Bitcoin and most altcoins rose on Monday, continuing a trajectory that started late last week.
Bitcoin (BTC) rose to $87,500, while tokens like Kaspa (KAS), Fartcoin (FARTCOIN), Solana (SOL), and Shiba Inu (SHIB) jumped by double digits.
Several catalysts are driving the ongoing cryptocurrency recovery. First, the rebound is happening as concerns that Donald Trump will fire Federal Reserve Chairman Jerome Powell rose.
These worries rose after Kevin Hassett, a senior economic official, hinted that Trump was studying whether removing the Fed Chair was possible. His statement came a day after the president blasted Powell for not cutting interest rates.
These fears have led to a surge in gold, which jumped to a record high. It also pushed US stocks, bonds, and the US dollar lower. The US dollar index tumbled to $107, while futures tied to the Dow Jones, Nasdaq 100, and S&P 500 fell by over 1%.
Bitcoin has done better than stocks because investors see it as a good alternative to gold, because of its limited supply and high demand. It has fallen by just 6% this year, while the tech-heavy Nasdaq 100 index is down by 15%. The blue-chip Nasdaq 100 index has also dropped by 13.8%.
Kaspa, Fartcoin, Solana, and Shiba Inu rose after Bitcoin formed a bullish pattern
These altcoins also rose after Bitcoin price formed a bullish pattern, as we wrote here. The four-hour chart shows that BTC formed a bullish pennant chart pattern, pointing to a strong surge.
This pattern is made up of a vertical line and a triangle-like pattern. It often leads to a strong bullish breakout, which has already happened. Therefore, Bitcoin will likely continue rising, possibly to the psychological point at $90,000.
A strong Bitcoin price surge often leads to more gains among altcoins like Solana and Shiba Inu.
Other altcoins have also formed positive chart patterns recently. The chart below shows that Shiba Inu price has formed a double bottom and a falling wedge on the daily chart. These are two popular bullish charts.
Similarly, Solana price formed a bullish divergence pattern as its active addresses and fees jumped. Fartcoin has formed a cup and handle pattern, while Kaspa created a double-bottom pattern at $0.0566.
Therefore, these patterns could be signs that altcoins are poised to bounce back after entering a bear market in the first four months of the year.
