Here’s why altcoins like Pepe, Solana, Jasmy, and Bonk are rising

Altcoin prices bounced back as some investors bought the dip following the recent crypto Black Monday, when most of them crashed.

Popular tokens like Pepe (PEPE), Solana (SOL), JasmyCoin (JASMY), and Bonk (BONK) rose by double digits from their lowest levels on Monday. 

Pepe, the popular Ethereum (ETH) meme coin, rose to $0.0000065, while SOL, JASMY, and BONK jumped by double digits.

There are three main reasons why these altcoins rose. First, there is hope that the US will move to negotiate with other countries. While tensions with China have risen, Trump has hinted of progress in trade negotiations with Israel, Japan, and Vietnam. 

These hopes have led to a risk-on sentiment among market participants, which explains why the stock market is rising. Futures tied to the Dow Jones and S&P 500 indices have both soared by over 2%, erasing some of the losses from the past few days.

Pepe, Jasmy, Solana, and Bonk rose as Fed rate cuts odds rose

Second, these altcoins have jumped as Wall Street analysts raised their estimates on when the Federal Reserve will cut interest rates. In the last meeting, officials guided for two interest rate cuts this year, and in a statement on Friday, Jerome Powell said that he would not be in a hurry to move.

The market, however, now predicts that the bank will deliver more cuts later this year. The closely-watched CME FedWatch tool places the odds of a cut in May at 30%, up from under 20% last week. Goldman Sachs estimates that the bank will deliver three cuts in the second half of the year. On Monday, a JPMorgan analyst warned that the Fed could move as early as May.

Morgan Stanley analysts have also warned that Trump’s tariffs will jeopardize the growth outlook for the economy and push for more cuts. The bank estimates at least three cuts this year. 

Altcoins like Solana, Pepe, Jasmy, and Bonk do well when the Federal Reserve is cutting interest rates.

Third, the rebound could be part of a dead cat bounce, a brief recovery in a declining market that quickly resumes its downward trend. This price action is also known as a bull trap.

Further, Solana also gained after Janover, a small Wall Street company, changed its management and began accumulating the coin. It raised $42 million from companies like Pantera, Kraken, Arrington Capital, and The Norstar Group. Its goal is to become the MicroStrategy of Solana, one of the biggest blockchains in the industry.