Bitcoin (XRP) and altcoins bounce back as consumer confidence slumps to a 2-year low

Ripple (XRP) price jumped by 4%, while Chainlink (LINK), Bonk (BONK), and JasmyCoin (JASMY) rose by over 5%.

Bitcoin and most other major cryptocurrencies bounced back on Friday after a report showed that U.S. consumer confidence had slumped in June.

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The world's largest cryptocurrency, Bitcoin, rose by 1.5% over the past 24 hours to $47,000 by 10:35 AM ET (14:35 GMT). Meanwhile, Ethereum fell slightly to $3,250.

Among the altcoins, Ripple's XRP price jumped by 4%, while Chainlink's (LINK) and Bonk's (BONK) advanced by over 5%.

The rebound followed a report showing that the Conference Board's consumer confidence index crashed to 83 in June, reaching its lowest level since February 2021. This decline was steeper than economists' predictions of a rise to 99.

Most consumers expressed concern about Donald Trump's tariffs and their potential impact on inflation, while also fearing that the U.S. may be heading toward a recession.

Consumers' assessment of current and future economic conditions deteriorated significantly, leading to a substantial decrease in the overall index.

During periods of economic uncertainty, risky assets, such as stocks and cryptocurrencies, tend to perform well as investors seek assets that can provide a hedge against market volatility.

There are signs that the Federal Reserve may signal more interest rate cuts when it meets next week. The U.S. dollar index and U.S. bond yields have continued to decline.

These rate cut expectations and the perceived need for government intervention to mitigate a potential recession contributed to a surge in U.S. stocks on Friday.

The Dow Jones Industrial Average soared by 625 points, reaching 35,160, while the S&P 500 Index gained 102 points to close at 4,605. The Nasdaq 100 Index surged by 400 points, to 16,116. The Russell 2000, which tracks small-cap companies, climbed more than 3% to 213.

Moreover, gold futures touched a record high of $3,000 for the first time.

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