Crypto Market Surges on Fed Rate Cut Hopes
The crypto market posted broad gains over the past 24 hours, fueled by strong expectations of an 85% probability of a Federal Reserve rate cut. PayFi stocks led the rally with a 9% jump, while XRP surged 11% and ETH breached $2,900. Bitcoin climbed 1.67% to $87,000, with gains extending across meme tokens, DeFi, Layer 1s, CeFi, and Layer 2s. Glassnode noted that although BTC recently dipped below $90,000 to test $80,000, momentum indicators remain oversold—yet early signs of recovery are emerging amid continued risk-off unwinding in both derivatives and spot markets.

VECS Commentary
This reflects a classic relief rally—not a bullish reversal. Market sentiment remains highly sensitive to macro narratives, especially rate expectations. Yet without fundamental confirmation (ETF inflows, on-chain accumulation, or network utility growth), such rallies are prone to quick retracements. Watch closely: a short squeeze may accelerate near-term upside, but if U.S. inflation data reignites hawkish fears, risk-off pressure could return within hours. Don’t mistake volatility for trend.