Altcoins like Dogecoin, Shiba Inu, and XRP moved higher on February 20, as the crypto market recovered. The total crypto market value rose to over $2.3 trillion, while Bitcoin climbed near $68,000.
1. Supreme Court ruling supported crypto
The Supreme Court of the United States ruled against tariff plans linked to Donald Trump. This raised hopes for lower inflation and possible interest rate cuts, which support crypto prices.
2. Weak US GDP increased rate cut hopes
The US economy grew only 1.4% in Q4, below expectations. This increased the chance that the Federal Reserve may cut interest rates. Lower rates usually push investors toward crypto.
3. Reduced global tension improved sentiment
Trump gave Iran more time to reach a nuclear deal, lowering fears of immediate conflict. This improved investor confidence and helped crypto prices rise.
However, analysts warn the rally could be temporary if market risks return.
