The total cryptocurrency market capitalization has managed to reclaim the $1 trillion mark after major cryptocurrencies recorded significant gains on Tuesday, according to CoinGecko data.
Bitcoin (BTC), the leading cryptocurrency, climbed to $20,469, the highest level since Sept. 13, on the Bitstamp exchange. Major altcoins, such as Ethereum (ETH) and XRP, are also in the green.
It is worth noting that cryptocurrencies continue to trade in lockstep with US equities. The Dow managed to rally by more than 1,500 points in just two days. The S&P 500 index has spiked by 5.7% for the week, recordings its best two-day gains since 2020.
Mark Haefele, chief investment officer at UBS Global Wealth Management, warned that markets were likely to remain volatile, which means that bulls shouldn’t read too much into that recovery.
The U.S. Federal Reserve is expected to hike the benchmark short-term interest rate by 75 basis points for the fourth time in a row.