After a rough start to the week, the crypto market is finally showing signs of life. A wave of fresh optimism has injected $89 billion into the market, pushing its total value to $2.61 trillion. But will this momentum last? The next big test lies at the $2.63 trillion resistance level.
Bitcoin, which briefly dipped below $80,000, is back in action—now aiming for $85,000. But there’s a catch. It first needs to break past $82,761, a key hurdle that traders are closely watching. With market sentiment shifting, what’s fueling this sudden turnaround?
Let’s break it down.
One of the biggest reasons behind this rally was Ukraine’s agreement to a temporary 30-day ceasefire after talks with U.S. officials, according to Bloomberg. This move eased global tensions, reassuring investors who had been on edge due to geopolitical risks.
In another positive shift, Ontario announced it was removing a 25% tariff on electricity exports to Michigan, New York, and Minnesota. This decision helped reduce trade tensions, which had been weighing on financial markets.
U.S. political leaders also stepped in to calm investors. House Speaker Mike Johnson urged patience with President Trump’s economic policies, suggesting they would bring long-term stability. Additionally, White House Press Secretary Karoline Leavitt reassured investors that the recent market turbulence was temporary and that the economy was going through a transition phase.
Earlier in the week, the crypto market faced heavy losses, with nearly $1 billion in liquidations pushing Bitcoin and Ethereum to monthly lows. However, the situation has improved significantly.
In the past 24 hours, total liquidations dropped to $384.4 million. Out of this, $138.2 million came from long positions (traders betting on price increases), while $246.2 million were short positions (bets on prices falling).
Bitcoin led the rebound, climbing 3.6% to trade at $82,299. According to Coinglass data, Bitcoin liquidations totaled $186.7 million, with most coming from short sellers forced to exit as prices rose. Ethereum saw a similar trend, with $73.6 million in liquidations, almost evenly split between long and short positions.
The market’s recovery has been driven by political stability and easing economic tensions, but investors are still cautious. While the drop in liquidations and Bitcoin’s price rebound are positive signs, further market movement will depend on how global economic conditions evolve. Any new geopolitical risks or economic policies could still impact the market’s momentum. For now, crypto traders are watching closely to see if this recovery can hold or if more volatility is on the way.
Bitcoin’s price is up due to reduced market liquidations, easing geopolitical risks, and positive shifts in global economic and political conditions.
The BTC price may range between $80,000 and $84,000 for today.
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