Bitcoin held above the $30,000 level while indices in Asian, Indian, European and U.S. markets turned green on Tuesday, data showed.
Traders priced in expectations of an easing of norms in Shanghai after weeks of strict lockdown, leading to a rise in Chinese stocks. Policymakers in Beijing have taken several measures in the past week to boost the economy in an effort to ease the slowdown.
The optimism surrounding China contributed to the positive sentiment and upswing in broader Asian markets: Hong Kong's Hang Seng rose as much as 6%, while India's Sensex gained 2.5%. Indexes in Japan and Shanghai each gained nearly half a percent.
Elsewhere, Europe's Stoxx 600 rose 1.5% in midday trading, and in the U.S., S&P500 futures gained 1.5%, while the tech-heavy Nasdaq added 1.9%.
Cryptocurrencies, which have been nearly 1:1 correlated with broader equity markets lately, gained 3.2% after nearly a week of declines that saw bitcoin (BTC) fall as low as $24,000. At press time, the largest cryptocurrency is selling for $30,300. Ether (ETH) rose 2.2% in the last 24 hours to over $2,000, with similar gains for Avalanche's AVAX, BNB Chain's BNB, and Dogecoin.
Polygon's MATIC (MATIC) rose 5.5% as Polygon Studios CEO Ryan Wyatt said the company is working with Terra projects that were affected by last week's implosion and will incorporate them into Polygon's broader DeFi ecosystem. Terra was worth billions of dollars in various DeFi applications before last week's collapse, such as Anchor.
Inflation, Bear Market Worries.
Crypto markets have been weighed down in recent weeks by waning sentiment for risky assets. The U.S. Federal Reserve announced it would raise interest rates several times this year to tighten its balance sheet, causing turmoil in the markets.
Morgan Stanley's asset management division warned in a note this week that economic growth is slowing, even noting that current price movements in stocks and bonds are more like a bear market than a correction.
"The downturn in equity and bond markets now more closely resembles a classic cyclical bear market than a simple correction," Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, said in a note Monday.