The cryptocurrency market recently staged a remarkable comeback, with the total market capitalization surging from a low of $3.86 trillion to nearly $4.1 trillion within a span of just three days. This impressive turnaround came after a period of broad sell-off, which had seen major digital assets, including Bitcoin, experience significant price drops. The change in fortune was largely sparked by a pivotal speech from U.S. Federal Reserve Chairman Jerome Powell at the Jackson Hole Economic Symposium. His remarks on interest rates were interpreted as a green light for risk assets, igniting a powerful rally that was primarily led by key altcoins such as Ethereum (ETH) and BNB.
Ethereum’s Historic Surge
Ethereum, in particular, appeared to be the biggest beneficiary of Chairman Powell’s speech. After a tumble to $4,080 on August 20, ETH staged a recovery, stabilizing around $4,200 before launching into a brutal breakout on August 22. This surge saw the number two digital asset set a new all-time high (ATH) of $4,890. This significant milestone saw ETH finally breach its previous ATH set back in 2021, a feat that had long been anticipated by the crypto community. While the rally later fizzled out and the price settled back to around $4,700, the achievement underscored the renewed bullish sentiment in the altcoin market. By hitting a new peak, Ethereum joined the ranks of Bitcoin and other altcoins like XRP and BNB, which had already reached new highs in 2025.
The Rise of BNB
BNB was another major gainer in the wake of the bullish sentiment that swept through the market. The token climbed to a new all-time high of $899.77. This marked a significant recovery from its dip below $740 on August 3, with BNB having climbed by approximately 20% since then, establishing itself as one of the best-performing altcoins of the month. Unlike Ethereum, which shed a substantial portion of its recent gains, BNB appeared poised to test the psychological $900 mark. Its proponents were buoyed by this momentum and began projecting that the token would soon reach the coveted $1,000 level.
Widespread Altcoin Gains
The overall market saw a widespread surge in many altcoins following Powell’s speech, with several registering double-digit gains in a short period. While many coins benefited, one of the notable standouts was Chainlink (LINK), which had bucked the downtrend during the earlier sell-off. It posted the largest seven-day gain among high-cap altcoins, with an impressive 18.5% increase. It was followed by Avalanche (AVAX) with an 8.9% gain and Solana (SOL) with an 8.4% increase. These performances highlighted the renewed investor interest and capital rotation from Bitcoin into the broader altcoin ecosystem.
A Few Underperformers
While the market was largely green, a few high-cap altcoins did not fare as well. HYPE saw its value drop by 7% over the period, while Stellar (XLM) and XRP experienced more modest declines of 3.7% and 3.4%, respectively. This mixed performance underscores the inherent volatility and nuanced nature of the cryptocurrency market, where not all assets move in unison. Each asset’s price action is influenced by a unique combination of on-chain fundamentals, technical analysis, and market sentiment.
Bitcoin’s Dominance Falters
In the midst of the altcoin-led rally, Bitcoin found itself in a different position. The top cryptocurrency had tumbled to $111,658 just hours before Powell’s speech. While it did briefly rise to $117,521 in the immediate aftermath, it subsequently retreated to around $115,000. As a result, Bitcoin ended the seven-day period with a 1.7% loss. This underperformance caused its market dominance to drop to 54.54%, according to data from Coingecko. The decline in Bitcoin’s dominance is a key indicator that capital is flowing from the market leader into altcoins, a trend often associated with the early stages of an altcoin season or a broader risk-on environment.
The Broader Market Context
The recent events underscore the significant influence of macroeconomic factors, such as central bank policy, on the cryptocurrency market. The market’s quick rebound demonstrated its resilience and ability to adapt to changing external conditions. While the price movements of ETH and BNB were particularly eye-catching, the overall health of the market is reflected in the total market capitalization and the widespread participation of a variety of digital assets.
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