The recent surge in crypto equities, highlighted by Coinbase’s 16% jump, signals renewed investor confidence as U.S. inflation cooled to 2.3% in April.

This moderation has sparked hopes of a Federal Reserve rate pause, lifting sentiment across risk assets.

While equities are enjoying the bounce, Bitcoin’s more tempered response suggests crypto-native investors remain cautious, keeping a close eye on macro trends and regulatory signals.

In the short term, the rally could hold if inflation continues to ease and rate cut expectations solidify.

However, looming risks from tariff-driven inflation to unresolved crypto regulation could limit its staying power.

Without stronger capital inflows or more regulatory clarity, the momentum may struggle to extend beyond the next few months.

Still, a continued equities uptrend could funnel fresh institutional and retail capital into crypto markets.

That might lift liquidity and support select altcoins, though Bitcoin’s dominance and profit-taking behavior may cap broader upside for now.

This is a market regaining confidence, but not without caveats.

Vugar Usi Zade, COO at Bitget

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