Bitcoin Price today surged 3.5% in the past 24 hours, nearing its all-time high of $111,970 after a month of sideways movement. Meanwhile, the global crypto market received a massive boost, adding $150 billion in a single day and driving the total market cap to $3.37 trillion.
But why is the crypto market up today & what’s driving this rally?
One of the major catalysts behind today’s rally is the tariff update from the White House. President Donald Trump announced a new trade deal with Vietnam, under which Vietnam will eliminate all tariffs on U.S. goods. In contrast, Vietnamese exports to the U.S. will continue to face duties ranging from 20% to 40%, a highly favorable deal for American trade.
Bitcoin Price is up today due to a surge in the US M2 money supply, which is a measure of how much money is flowing into the economy. The M2 jumped 4.5% in May, reaching a record $21.94 trillion. This marks the 19th consecutive month of growth. BTC price always tends to follow money supply growth after a few months, so this trend could push prices higher in the coming weeks.
Bitcoin spot ETFs are still pulling in big dollars. On July 2, Bitcoin ETFs saw $407.8 million flow in. Fidelity, Ark Investment, and Bitwise led the pack, seeing an inflow of $184 million, $83million, and $64.9 million, respectively.
Another boost came from short liquidations. In the last 24 hours, traders betting against Bitcoin were forced to close losing positions, about $248.85 million of the total $294.5 million came from short positions. Meanwhile, long traders saw liquidation of $45.80 million according to CoinGlass data.
Meanwhile, it’s not just Bitcoin enjoying the 2.5% rally and trading at around $109,366. Ethereum price today is up by more than 5% trading around $2588, while coins like XRP, Solana, and Cardano have each gained around 5%.
Even memecoins like Dogecoin and Shiba Inu are up by 5%–8%. Meanwhile, overall crypto market sentiment remains bullish for today.
| Top Gainers | Top Losers |
| Bonk: +22.36%, now at $0.0000172 | Four (FORM): −3.3% |
| Dogwifhat (WIF): +18.4%, now at $0.94 | Pudgy Penguins: −2.3% |
| Celestia (TIA): +15.75%, now at $1.63 | Bitcoin Cash: −0.26%, now at $504 |
The US-Vietnam trade deal, highly favorable to American trade, boosts overall economic optimism and investor confidence. This positive sentiment encourages capital flow into risk-on assets, including cryptocurrencies. It signals a more stable global economic environment, which can indirectly lead to increased investment in digital currencies.
A bullish crypto market sentiment, indicating widespread optimism and confidence among investors, often acts as a self-fulfilling prophecy. It encourages more buying, attracts new investors, and can lead to increased trading volumes and upward price momentum. This collective positive outlook can sustain rallies and push prices higher in the short to medium term.
Besides M2 money supply growth, other macroeconomic factors influencing the crypto rally include institutional adoption (like significant inflows into Bitcoin ETFs), potential interest rate cuts by central banks if inflation cools, and broader global liquidity conditions. Geopolitical stability or favorable trade agreements also contribute by increasing overall investor confidence in risk assets.
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