Bitcoin and most altcoins, including popular names like Dogecoin, Shiba Inu Coin, and XRP, were in the green today, February 20, as investors bought the dip after some key catalysts.
Summary
- Bitcoin and most altcoins rose on Friday, with the market capitalization of all tokens rising to over $2.3 trillion.
- The rally happened after the Supreme Court ruled against Donald Trump’s tariffs.
- They also rose after the latest US GDP report, which showed that the economy slowed in Q4.
Bitcoin (BTC) jumped to $68,000, while Dogecoin (DOGE), Shiba Inu Coin (SHIB), and Ripple (XRP) rose by over 4%. The market capitalization of all tokens rose by 2.2% to over $2.3 trillion.
Dogecoin, Shiba Inu Coin, and XRP rose after the Supreme Court ruling
The main reason why altcoins like DOGE, SHIB, and XRP rose is that the Supreme Court ruled against President Donald Trump’s tariffs.
In theory, the ruling will have a positive impact on the US economy by lowering inflation. Such a move raises the possibility that the Federal Reserve will cut interest rates, especially now that the recent data showed that the headline Consumer Price Index dropped in January.
In reality, however, the decision will not have a major impact as Trump has some backup strategies that he will use to implement tariffs on key countries like China, India, and those in the European Union.
Weak US GDP data and impact on the Federal Reserve
Bitcoin and other altcoins rose after the US published a weak GDP report. According to the Bureau of Economic Analysis, the economy expanded by 1.4% in the fourth quarter, badly missing the expected 3%.
The economic growth was much lower than the 4.4% experienced in the third quarter. This slowdown was mostly because of the prolonged government shutdown that happened during the quarter.
The weak economic report is bullish for cryptocurrencies because it raises the possibility that the Fed will cut interest rates later this year.
Donald Trump gave Iran more time to reach a deal
Bitcoin and most altcoins also rose after Donald Trump gave Iranian leaders more time to reach a nuclear deal with the United States. He gave them 15 days, meaning that an attack may not happen during the weekend as some analysts were expecting.
Still, most analysts believe that he will ultimately attack the country later this year, a move that will lead to lower crypto prices. As such, there is a risk that the ongoing rebound is a dead-cat bounce, a situation where assets rise briefly and then resume the downtrend.
