What happened

Today’s price action in the crypto market is notable, in that the direction of this move is to the upside. Crypto investors haven’t seen a lot of green lately, making today’s 3.2% increase over the past 24 hours for the overall market a pleasant turn in the right direction.

This move has been driven by significant outperformance from large-cap cryptocurrencies Bitcoin (BTC 1.07%), Solana (SOL -1.86%), and Avalanche (AVAX 0.06%) today. As of 9:30 a.m. ET, these top tokens have appreciated 2.3%, 3.2%, and 6.5%, respectively, over the past 24 hours. 

As it happens, there are unique catalysts taking each of these tokens higher today.

Bitcoin’s move higher today appears to be driven by a weaker U.S. dollar, as well as a flight to relative stability in the crypto sector. Solana and Avalanche have both seen interest as Ethereum alternatives, with investors seemingly more interested in diversification amid a rather harsh bear market for this asset class.

For Avalanche, this move higher is a welcome sight, considering the terrible performance this token has seen over the past week, as investors ponder whether the Luna Foundation Guard and Terraform Labs, the parent company of Terra (LUNA 4.62%), will sell its Avalanche holdings.

So what

Generally speaking, the strength of the U.S. dollar is a factor that hasn’t been discussed much, relative to the underperformance of the crypto sector of late. The U.S. dollar has surged on higher interest rates, as global investors flee to safe-haven assets amid this sell-off. For cryptocurrency prices, much like the prices of other commodities denominated or exchanged with dollars, this has been a key headwind. Recent declines in the U.S. dollar over the past week have…