Why Crypto Market Is Up Today: Bullish Technicals & Market Catalysts
The post Why Crypto Market Is Up Today: Bullish Technicals & Market Catalysts appeared first on Coinpedia Fintech News
The crypto market has rebounded after a recent dip. Currently, the total market cap of the cryptocurrency market stands at $2.96T. In the last 24 hours, the market has experienced a surge of 1.5%. During the period, almost all the top ten cryptos have seen growth. BTC has grown by 2.7%, ETH by 1.6%, XRP by 3.2%, SOL by 3.2% and DOGE by 2.9%. The big question is: what has triggered this rebound? Let’s dive into the key reasons behind this price surge.
Trump’s Tariff Delay Sparks Market Optimism
Earlier, US President Donald Trump 
Donald Trump
Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election
President
announced a 25% tariff on auto imports from Canada and Mexico. The move created havoc in the global economy. It even affected the crypto industry as well. It was feared that the development could push the Northern American region into a severe trade war.
Yesterday, a temporary solution was made in the issue, as Trump agreed to a 30-day delay in the implementation of the tariff plan.
The decision was the final outcome of a series of discussions conducted with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum by Trump.
The temporary halt in the implementation of the plan has averted immediate trade disruptions, and, thus, considerably lowered macroeconomic pressure. Experts opine that this development has positively influenced the crypto market.
Stock Market Gains Add to Crypto Rally
Yesterday, the US market reported a rise of around 1.05%. The S&P 500 index surged from $5,781.50 to $5,842.62.
The crypto market, even crypto stocks, have benefited from this positive momentum in the US stock landscape.
Yesterday, the MicroStrategy stock price climbed from $277.54 to $308.55, marking a notable rise of 11.17%
On the same day, the stock price of Coinbase Global grew from $214.64 to $222.45, recording a surge of 3.63%
Weaker US Dollar and Interest Rate Speculation
In the last four days, the US Dollar index has declined by 3.21%. A weaker dollar can signal concerns about the US economy’s health. It can lead to higher import prices, potentially fueling inflation.
If the dollar is falling, and that fall is contributing to inflation, the US Fed may adjust interest rates. Reports say that there is a 52% probability for a Fed rate cut in June 2025.
Lower interest rates can encourage investors to seek higher returns in riskier assets, such as cryptos.
It is fair to assume that the drop in the DXY index reading and speculations regarding the June interest rate cut have influenced the crypto market positively.
Technical Indicators Point to a Bullish Breakout
Currently, the total market cap of the crypto market stands at $2.96T. The 200-day SMA of the market stands at $2.79T, the 100-day SMA at 3.28T and the 50-day SMA at 3.19T.
Recently, the market rebounded from the 200-day SMA line – which acts as a strong support. Now, it remains at least 5.74% above the support.
The 100-day SMA and 50-day SMA now act as resistant levels. If it breaks above the range of $3.19T and $3.28T, the market could see a strong bullish rally.
The RSI of the market is at 47.58. This also suggests that there is enough room for the market to grow further.
In conclusion, the crypto market is showing strength, with key technical levels in focus. If the trend continues, a bullish breakout could be on the horizon.
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