Crypto Market News: Jasmy, Pepe, and Render Rally Sparks Caution Amid Dead Cat Bounce Fears

The cryptocurrency market underwent a strong resurgence, led by altcoins like Jasmy, Pepe, and Render. Their prices surged as the dip was bought up by eager investors, showing the same optimism in global equity markets. U.S. index futures were also in the plus, with the Dow Jones up 600 points, the S&P 500 up 60 points, and the Nasdaq 100 up 135 points. Asia was also not different, with Japan’s Nikkei 225 up 5.4% and India’s Nifty Index up 1%.

Crypto Tokens Join the Surge

This positive trend was reflected in the crypto sector, where most tokens traded in the green. Some top performers included Core, Hyperliquid, Helium, Maker, and Ethena—each gaining more than 10%. Solana ecosystem tokens also benefited from a unique development: Janover, a small Wall Street firm, announced its intention to invest in Solana and related projects, providing a strong fundamental reason for their price movement.

Geopolitical and Economic Drivers

The rally wasn’t purely technical—it was influenced by recent geopolitical comments. Donald Trump hinted at his willingness to negotiate trade deals with nations that lower tariffs and non-tariff barriers. He mentioned that Japanese officials were headed to the U.S. for talks and that a deal with Israel was in the works. Although U.S.-China tensions remain, many analysts believe a trade deal between the two superpowers is still on the table, possibly involving increased Chinese purchases of American goods.

Interest Rate Cut Speculation Boosts Market Mood

Another key factor behind the crypto and stock market rally is the growing belief that the Federal Reserve might cut interest rates soon. Goldman Sachs analysts have predicted that a U.S. recession could trigger up to three rate cuts this year. Supporting this view, the 10-year U.S. government bond yield has fallen to 4.1%, down from a high of 4.8% earlier this year. Falling yields often indicate that markets are pricing in lower interest rates ahead.

Warning: Could This Be a Dead Cat Bounce?

Though the optimism is pleasant, some market analysts are cautioning that we might be witnessing a typical “dead cat bounce” – a short-term price bounce in the middle of a long-term downtrend. These short-lived rallies seem to lure individual investors who attempt to catch the market at the bottom, only to have the price decline again.

An eToro analyst asked investors to put their attention on dollar cost averaging (DCA) rather than seeking short-term profits. He also suggested putting attention on high-cap moving averages to identify genuine breakouts. “Although there has been a partial rebound of some tokens, they’re still well into bear market territory,” he said.

Lessons from Bitcoin’s Recent Move

These bounces are old news. Bitcoin, for instance, dropped in February to $76,585 before it bounced back to $89,000—to then drop again in what was a multi-month dead cat bounce. Analysts warn that the same is occurring with altcoins like Jasmy, Pepe, and Render unless supported by stronger fundamentals.