Crypto Market Rebounds on Fed Dovish Signals, Led by Speculative Tokens

The broader cryptocurrency market staged a broad recovery on Thursday, with the CoinDesk 20 Index gaining nearly 5% over 24 hours to reach its highest level in a week. The rally was driven by dovish remarks from Federal Reserve Chairman Kevin Warsh, who told participants at the Sintra conference that inflation risks have receded, prompting traders to walk back bets on a July rate hike.

Bitcoin climbed more than 4% to $61,200, surpassing the $60,000 mark for the first time in a week. Ether advanced 5%, while Solana's SOL posted a 9% gain on the day and approximately 16% over the week, making it one of the standout performers in the move. XRP added close to 4%. All 20 members of the CoinDesk 20 Index closed in positive territory.

Smaller speculative tokens outpaced the majors. Memecore's M token surged 81% and Audiera's BEAT rose 12%, ranking first and second among the top 100 coins by market capitalization. Venice Token (VVV) followed in third place with a 9% gain. Solana's outperformance was also tied to a network announcement: an onchain governance system requiring stakers to hold at least 100,000 tokens to submit proposals.

'First real bounce of the whole selloff, and it has something behind it,' analysts at Marex wrote in a note to clients, citing Warsh's Sintra comments and BTC's recapture of $60,000 as key catalysts.

Traders are also watching two upcoming events: the U.S. nonfarm payrolls report due later Thursday and President Donald Trump's expected introduction of voluntary AI model standards next week.

On the derivatives side, 24-hour trading volume jumped 18% to nearly $200 million, while open interest rose 4% to $107 million. Total liquidations reached $444.6 million, with short positions accounting for the majority — a sharp reversal from weeks of long-side liquidations. Bitcoin's open interest climbed to 777,870 BTC from 768,000 BTC a day earlier, the highest since June 4. Annualized funding rates turned positive at around 10%, and the 24-hour cumulative volume delta for BTC ranked highest among major cryptocurrencies, indicating aggressive buying pressure.

Ethereum futures open interest, however, remained flat near 13.8 million tokens, and XRP showed a similar lack of leveraged demand. SOL futures open interest fell to 72 million SOL, down from a record 76.6 million recorded on June 24. On Binance, the three-month futures basis for both BTC and ETH continues to trade below the U.S. 10-year Treasury yield of 4.49%, signaling limited institutional cash-and-carry activity. The Deribit options market has not fully aligned with the bullish tone: BTC and ETH puts still trade at a premium to calls, though 30-day implied volatility indexes for both assets have pulled back from the late-June spike.

In a separate development, Ethereum layer-2 network Taiko reopened its cross-chain bridge following a $1.70 million hack that forced a suspension of operations on July 22. The bridge was restored after a multistage recovery process that included an independent security review. The news briefly sent the native TAIKO token up more than 100% to $0.38, before the price retreated to $0.16. With a market capitalization of approximately $32.5 million, TAIKO does not rank among the top 500 tokens by market value, and the sharp price swings reflect the liquidity risks inherent in smaller assets.

The OI-adjusted cumulative volume delta for most of the top 25 tokens turned positive over the 24-hour period, pointing to buyers taking the initiative at market prices rather than passively waiting at limit orders — a meaningful shift from the seller-dominated conditions seen in recent weeks.