U.S. Stocks Surge, Crypto Market Volatility Persists

U.S. Stocks Continue Recovery Rally, Crypto Market Faces Downward Volatility

The U.S. stock market experienced a notable recovery rally on February 5, with the three main indexes closing higher. The Dow Jones Industrial Average gained 0.3%, the S&P 500 increased by 0.72%, and the Nasdaq composite surged by 1.35%. This positive movement follows a V-shaped recovery from earlier losses, primarily fueled by robust corporate earnings that have significantly lifted investor sentiment. Major technology stocks such as Apple, Tesla, and Google saw increases exceeding 2%.

Amid these positive stock outcomes, the cryptocurrency market faced challenges, particularly with Bitcoin struggling to maintain its position above $100,000 before retreating to approximately $96,000. This decline can be attributed to uncertainties arising from trade tensions between China and the U.S. and the lack of clarity surrounding U.S. Bitcoin reserves. Meanwhile, the market dominance of Bitcoin has notably risen to 61%, reflecting a shift in investment from altcoins back to Bitcoin, as investors stay alert to upcoming U.S. non-farm payroll data and Federal Reserve discussions.

In a recent interview with CNBC, White House "Crypto Czar" David Sacks expressed strong support for Bitcoin, describing it as an excellent store of value. He revealed that among the priorities of a government working group is the thorough evaluation of Bitcoin reserves. Sacks underscored Bitcoin's reputation as the earliest and most resilient digital currency, highlighting its history of security against hacking incidents. Furthermore, after discussions with leaders from the Congressional Banking and Financial Committee, Sacks anticipates new cryptocurrency legislation within the next six months aimed at establishing a more refined regulatory framework. Meanwhile, the U.S. SEC is pivoting its approach by scaling back specific enforcement teams for cryptocurrencies and reallocating legal resources. He also noted that the government intends to bolster stablecoin issuance in the U.S., which is expected to fortify the dollar's position on the global stage and stimulate demand for U.S. Treasury bonds.

Republican lawmakers announced a bicameral working group to fast-track crypto regulations, focusing on stablecoins and digital asset market rules in a major push for long-awaited industry clarity. The move, announced on Feb. 4 at a Capitol Hill press conference, marks a coordinated effort