Why Is The Crypto Market Up Today?

The total crypto market cap (TOTAL) and Bitcoin (BTC) continue to capitalize on the impact of the US government shutdown. BTC has managed to cross the $120,000 resistance today. On the altcoins front, ether.fi (ETHFI) took the spot of the best performer today as it shot up by 20% in 24 hours.

In the news today:-

• Tether and Circle minted nearly $3 billion in stablecoins within 24 hours, despite stable transaction volumes. The move sparked community skepticism amid looming regulations and the absence of third-party audits.
• BlackRock’s Bitcoin ETF has become the largest venue for BTC options trading, hitting $38 billion in open interest and surpassing Deribit. While the milestone boosts confidence in crypto ETFs, a TradFi takeover could pressure margins for native crypto exchanges in the long term.

The Crypto Market Rises

The global crypto market cap surged by $66 billion in the past 24 hours, reaching $4.07 trillion. This sharp rise highlights growing investor confidence. However, TOTAL is now approaching resistance at $4.11 trillion, a level that has capped gains before and could test the market’s strength again.

For TOTAL to extend momentum, consistent inflows and strong buying activity will be required. Sustaining this pace could help push the market past $4.11 trillion and unlock higher targets. A breakout beyond resistance would reinforce bullish sentiment.

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Total Crypto Market Cap Analysis. Source: TradingView

If the rally weakens, the market risks losing ground. A reversal could push TOTAL below the $4.00 trillion support level. Should that happen, the broader cap may slide toward $3.94 trillion, erasing recent gains.

Bitcoin Is Nearing Critical Zones

Bitcoin is trading at $119,840 after briefly breaching the $120,000 mark in the past 24 hours. The crypto king must attempt to secure $120,000 as a strong support level again. Holding this threshold is crucial for sustaining momentum and avoiding a pullback that could weaken bullish sentiment.

The recent rally has pushed Bitcoin closer to the $122,000 resistance zone. If momentum continues, BTC could break through this barrier and target $125,000 in the coming sessions. Such a move would strengthen investor confidence and reinforce the market’s bullish outlook as Bitcoin approaches its all-time highs.

Bitcoin Price Analysis. Source: TradingView

However, profit-taking could alter this trajectory. If investors begin selling to secure gains from the recent surge, Bitcoin’s price may retreat toward $117,261. A drop to this level would invalidate the bullish thesis.

Ether.fi Takes The Lead

ETHFI emerged as the day’s top performer, surging 20% in just 24 hours. The altcoin is now trading at $1.71, reflecting strong investor demand and renewed market interest. The sharp rally has positioned ETHFI among the leading gainers, signaling potential for extended upside if momentum continues.

The token, however, faces immediate resistance at $1.75. A breakout above this level could push ETHFI higher, with targets set at $1.83 and eventually $2.00. Clearing these barriers would reinforce bullish momentum.

ETHFI Price Analysis. Source: TradingView

If sentiment shifts, ETHFI risks losing ground. A wave of selling could drag the price back to the $1.60 support level. Failure to hold this range would weaken the bullish outlook, potentially triggering a broader correction.