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Vignesh S G
Vignesh S G
Author
- Mar 06, 2025 10:54 UTC
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Why Crypto Market Is Up Today: Tariff Delay, Weakened Dollar, and More!
A temporary delay in US auto tariffs eased global economic concerns, positively impacting crypto markets.
Gains in US stock markets, including crypto-related stocks, contributed to the crypto market's rebound.
A declining US dollar and expectations of future interest rate cuts are driving investment towards riskier assets like cryptocurrencies.
The cryptocurrency market is making a strong comeback after a recent dip. Currently, the total market cap stands at $2.96 trillion, reflecting a 1.5% surge in the past 24 hours. Nearly all top-ten cryptocurrencies have recorded gains—Bitcoin (BTC) is up 2.7%, Ethereum (ETH) 1.6%, XRP 3.2%, Solana (SOL) 3.2%, and Dogecoin (DOGE) 2.9%.
But what’s fueling this rebound? Let’s dive into the key factors behind this price surge.
Trump’s Tariff Delay Sparks Market Optimism
Earlier, U.S. President Donald Trump announced a 25% tariff on auto imports from Canada and Mexico, sparking fears of a severe trade war. The move rattled global markets, including cryptocurrencies. However, a temporary resolution was reached yesterday when Trump agreed to delay the tariffs by 30 days following discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.
This delay has eased immediate trade tensions, reducing macroeconomic pressure and boosting investor confidence—one of the factors contributing to crypto’s recent rebound.
Stock Market Gains Spill Over to Crypto
The U.S. stock market also saw a notable uptick, further fueling optimism in the crypto space. The S&P 500 index jumped from $5,781.50 to $5,842.62, a rise of 1.05%.
Crypto-related stocks mirrored this momentum:
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%
Falling U.S. Dollar Sparks Interest in Crypto
The U.S. Dollar Index (DXY) has declined 3.21% in the last four days, raising concerns about the strength of the U.S. economy. A weaker dollar often leads to higher import prices, potentially driving inflation.
With inflation fears looming, speculation is growing that the Federal Reserve may cut interest rates. Current reports indicate a 52% probability of a rate cut in June 2025. If the Fed lowers rates, investors may shift toward riskier assets like cryptocurrencies, further strengthening the market.
Key Technical Levels Suggest Further Growth
The crypto market’s total cap currently sits at $2.96T, with crucial moving averages in play:
- 200-day SMA: $2.79T (strong support level)
- 100-day SMA: $3.28T
- 50-day SMA: $3.19T
Recently, the market bounced off the 200-day SMA, now trading 5.74% above this support level. The next test will be breaking through resistance at $3.19T and $3.28T—if successful, a strong bullish rally could follow.
Meanwhile, the Relative Strength Index (RSI) stands at 47.58, indicating there’s still room for further growth before the market enters overbought territory.
The charts are aligning, the fundamentals are shifting—now all eyes are on the next breakout.
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