Why is the crypto market up today?

The cryptocurrency market is up right this moment, with the overall market capitalization rising by roughly 3.8% within the final 24 hours to succeed in $2.73 trillion on April 2. The positive factors have been led by Bitcoin (BTC) and Ether (ETH), which have risen round 3% and 5%, respectively.

Let’s take a look at the highest catalysts driving the crypto market rebound right this moment.

Markets take “deep breath” forward of Trump’s “liberation day”

The crypto market’s restoration right this moment aligns carefully with comparable rebounds within the US inventory market, forward of Trump’s “liberation day,” with Bitcoin main the market larger.

What it’s best to know:

• Dubbed by President Donald Trump as a pivotal second for US commerce coverage, the “Liberation Day” on April 2 guarantees the announcement of reciprocal tariffs aimed toward rebalancing world commerce. 

• Current weeks have seen cryptocurrencies retreat amid fears of a tariff-induced financial slowdown, with Bitcoin dropping practically 23% from its all-time excessive because of macroeconomic uncertainty. 

• Nevertheless, right this moment’s positive factors counsel a attainable shift in sentiment, with market analysts viewing it as a second of calm earlier than the storm.

• This has spurred a risk-on sentiment, with Bitcoin climbing again above $84,000 and Ether edging above $1,800. 

• This implies that traders are positioning themselves forward of tomorrow’s doubtlessly market-moving information.

• Dogecoin (DOGE) and Cardano (ADA) rose over 6%, whereas XRP (XRP), Solana (SOL) and BNB (BNB) have been up practically 3.5%.

Seems like world market sentiment is taking a “take a deep breath” method within the countdown to Donald Trump’s “Liberation Day” tariff announcement, mentioned Reuters’ Kevin Buckland in a Morning Bid publication.

“Nothing has actually modified: We nonetheless aren’t any wiser as to what Trump is ready to announce on Wednesday,” Buckland continued, including:

“Any expectations that there is perhaps room for commerce companions to barter apparently got here undone with the US president’s assertion late on Sunday that basically each nation can be slapped with reciprocal levies.”

Commenting on this buying and selling agency, QCP Capital mentioned {that a} “broad and aggressive regime might deepen recession fears and ship danger property spiraling.” 

QCP Capital added:

“That mentioned, political theatre typically leaves room for recalibration. A softer-than-expected rollout might supply markets a quick reprieve.”

Crypto funding funds flows stay optimistic

The crypto market’s ongoing correction aligns with vital inflows into crypto funding merchandise. 

Key takeaways:

• Digital asset funding merchandise noticed inflows for the second week in a row, totaling $226 million through the week ending March 28, as per CoinShares report.

• This brings the final two weeks of inflows to $870 million, following 5 weeks of outflows.

• Bitcoin funding merchandise noticed investor inflows totaling $197 million, whereas altcoins noticed inflows for the primary time in 5 weeks totaling $33 million.

• This means institutional traders are growing their publicity to digital property, albeit in a “cautious” method, in response to CoinShares head of analysis James Butterfill.

Butterfill mentioned: 

“Following the most important outflows on report, ETPs have seen 9 consecutive buying and selling days of inflows.”

Associated: March 2025 in charts: Trump commerce struggle hits Bitcoin, $22M in DeFi hacks

Crypto market technical rebound

From a technical perspective, the crypto market’s bounce right this moment has occurred primarily because of its oversold relative power index (RSI).

Key factors:

• The RSI on the 4-hour timeframe dipped beneath 30, getting into oversold territory.

• A slight rebound in RSI suggests consumers are stepping in to soak up promoting strain.

Moreover, the crypto market is eyeing prolonged restoration because it paints a possible double-bottom sample.

Notice that:

• The entire crypto market cap chart reveals two consecutive lows round $2.60 trillion, forming a double backside sample.

• A double-bottom is taken into account a bullish reversal construction, resolving when the worth breaks above its neckline resistance and rises by as a lot because the sample’s most peak.

• Affirmation of this sample would require a decisive breakout and a four-hour candlestick shut above the neckline at $2.67 trillion.

• If the breakout happens, the measured transfer goal is $2.76 trillion.

• The goal lies above a vital provide zone stretching from $2.72 trillion and $2.74 trillion, the place all the main shifting averages lie.

• Failure to interrupt above this barrier might lead to continued consolidation between $2.70 trillion and $2.72 trillion.

Based on in style analyst Crypto Zone, the crypto market remains to be “gripped by worry,” with the Worry & Greed Index sitting at 24, whilst the overall market cap rises.

The analyst added:

“This blended sentiment suggests warning, but in addition potential shopping for alternatives for individuals who dare to be grasping when others are fearful.”

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.