The broad-based CoinDesk 20 Index outperformed BTC and ETH, with all of its constituents advancing through the day and SOL, AVAX and APT gaining 10%-15%.
Wednesday's FOMC meeting carries uncertainty for the market, with investors still divided on the magnitude of rate cut.
Ether's year-to-date gain has narrowed to less than 10% in crypto's latest price tumble.
Bitcoin's price fell to $58,900 while other major cryptocurrencies fell more than 4% late Wednesday.
Bitcoin's 30% decline in a week was for some observers reminiscent of the March 2020 crash, but there's been multiple occasions of similar drawdowns during previous bull markets.
The bullish news continued on Thursday morning, but sellers remained in control of the market.
In what has been a familiar pattern over the past months, a rally to a key number was met with a wave selling.
AAVE is surging following a token buyback proposal.
Solana's SOL and Ripple's XRP were notable outperformers.
The Mt. Gox distribution will not end the bullish trend, CryptoQuant CEO noted.
The market will have to absorb between $4-$6 billion worth of bitcoin selling pressure throughout the summer months, weighing on prices, K33 Research said.
As bitcoin's volatility is nearing historically low levels, the crypto market is in need of news or catalysts to bring traders to action, one market participant noted.
U.S. regulators approved listing spot ETH ETFs but have not yet cleared to trade.
Sluggish U.S. retail sales and softer inflation reports have opened the way for the next leg up in the crypto rally, Swissblock said.
Despite the recent bounce, the correction isn't over, said one technical analyst, expecting bitcoin to fall to the low-mid $50,000 area before rallying to new all-time highs.
Bitcoin will likely trade in a range between $60,000 and $70,000 through the next few months, the former BitMEX CEO said.
The yen's volatile episode may spread to other fiat currencies as U.S. rate cuts remain elusive amid sticky inflation, which could drive investors to gold and bitcoin, Noelle Acheson said in an interview.
Increasing concerns about sticky inflation hit risk assets across all markets including cryptos.
Major U.S. equity indices closed the day lower as faster CPI reading for March, will BTC was up 1%.
Bitcoin is showing resilience despite the slip, but the corrective period might continue for a while before a return to growth, one observer noted.
U.S.-listed spot bitcoin ETFs saw over $830 million of outflows so far this week, and are poised for the first negative week since late January.
The rally continued Wednesday as the spot ETFs continued to see massive inflows of fresh money.
Bitcoin could target $58,000 after the breakout, Swissblock analysts suggested.
Some traders are targeting the $64,000 level in the coming weeks as demand from spot bitcoin exchange-traded fund (ETF) products grows.
The broader altcoin market also showed signs of rebounding from oversold levels, one analyst noted.
Bitcoin so far remained muted compared to its vehement rally during the March banking crisis, but one analyst said he's "cautiously long" amid the turmoil.
Bitcoin hit its highest price in more than two years Thursday before it fell back to $46,000 as the highly anticipated spot bitcoin ETF debut unleashed volatility.
Bitcoin could rally 10%-15% more in case the SEC approves spot bitcoin ETFs, LMAX strategist Joel Kruger noted.