Global markets rallied on Tuesday, recovering some ground after the previous day’s heavy losses and driving the total market capitalization of crypto assets up 7% in the past 24 hours to $2.07 trillion. Bitcoin (BTC) is trading at $56,000 after briefly plunging below $50,000 yesterday. Meanwhile, Ether (ETH) is up 11% to $2,500, Solana (SOL) has soared 21% to $143 after dipping as low as $110, and Polkadot (DOT) is up 14%. All of the top 100 digital assets by market capitalization posted gains, led by Bittensor (TAO), which rallied 50% overnight. Other top gainers include Akash Network (AKT), BRETT, Render Network (RENDER), Ondo Finance (ONDO), Aave (AAVE) and Dogwifhat (WIF), which have rallied 30% or more in the past 24 hours, according to CoinGecko. "Cross-asset markets have been under pressure since late last week, driven by a combination of factors that have led to a re-pricing of risk assets. These include significant shifts in the interest rate market, tightening odds in the U.S. election, escalating tensions in the Middle East, tech sector sell-offs in equities, and the unwinding of carry trades,” said Vitali Dervoed, co-founder of Spark, a predicate-based central limit order book on Fuel Network. “However, despite these short-term challenges, this does not affect the long-term path we are all on." The crypto rally comes as major stock markets show signs of stabilizing, with Japan’s Nikkei index surging 10% and U.S. index futures in the green after positive comments from central bank officials assuaged panicked investors. San Francisco Fed President Mary Daly said that she expects the central bank to cut interest rates at its next policy meeting in September. “Policy adjustments will be necessary in the coming quarter,” she said at a forum in Hawaii. “We’ve now confirmed that the labor market is slowing, and it’s extremely important that we not let it slow so much that it turns itself into a downturn.” Meanwhile, Chicago Fed President Austan Goolsbee said on CNBC that monetary policy would depend on incoming economic data but that the Fed should not be restrictive if the economy is not overheating. According to the CME’s FedWatch tool, market participants now expect the U.S. central bank to reduce the benchmark Federal Funds rate by 0.5% in September.