​According to a report from CoinDesk, the cryptocurrency market saw a sharp rebound on Friday, with bitcoin (BTC) reclaiming $63,000 after a dip below $59,000 the previous day. This surge in prices came despite concerns over slightly higher inflation readings, as investors turned their attention to an upcoming fiscal policy update from China on Saturday.

Bitcoin, the largest cryptocurrency by market capitalization, saw a 7% increase from its Thursday low, outperforming the broader CoinDesk 20 Index (CD20) which saw a 4.7% gain over the past 24 hours. Other major altcoins such as Solana (SOL), Avalanche (AVAX), and Render (RNDR) also saw gains of 6%-8%. The only token in the CD20 index with a negative daily return was Uniswap (UNI), which saw a slight decline after a surge on Thursday due to the announcement of its own layer-2 network.

The crypto rally coincided with gains in the stock market, with the Dow Jones Industrial Average and S&P 500 reaching record highs. The U.S. dollar index also paused below 103 after a strong week, as traders adjusted their expectations for further interest rate cuts from the Federal Reserve following positive U.S. jobs reports and higher inflation readings.

Stocks related to the cryptocurrency market also saw positive movement, with bitcoin miners such as MARA Holdings (MARA), Riot Platforms (RIOT), and Bitdeer (BTDR) seeing gains of 5%-10%. U.S. crypto exchange giant Coinbase (COIN) also saw a 7% increase in its share price. MicroStrategy (MSTR), the largest corporate holder of BTC with nearly $16 billion in assets, saw a 16% surge to its highest price since March 2000. The company’s share price premium compared to its bitcoin holdings also reached its widest point since 2021.

According to a report from Coinbase analysts David Duong and David Han, the macroeconomic factors influencing crypto prices have shifted away from monetary policy and towards the outcome of the U.S. election. They also noted that the upcoming fiscal policy update from China’s finance minister could have an impact on the digital asset market, as investors anticipate more financial stimulus for the struggling Chinese economy and financial markets.

Markus Thielen, founder of 10x Research, believes that recent U.S. economic data shows a strong and resilient economy, easing concerns of a potential recession. He predicts that this could lead to a positive performance for risk assets, including cryptocurrencies, for the rest of the year. Thielen also suggests that a significant move in the crypto market is likely on the horizon, and traders should be prepared to take advantage of it. 

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