Why Is The Crypto Market Up Today?

2h ago•

bullish:

bearish:

The crypto market rebounded 0.65% to $2.57 trillion as Donald Trump’s pledge to end the Iran war quickly triggered a wave of short liquidations and a relief rebound across digital assets.

Bitcoin (BTC) recovered 0.61% to $77,951 after avoiding a channel breakdown, while Hyperliquid (HYPE) led the recovery with a 17.7% surge to $56.26 amid heavy Grayscale ETF accumulation.

In the news today:-

SpaceX filed its long-awaited S-1 for a June 12 Nasdaq IPO at a $1.75 trillion-$2 trillion valuation, with the filing revealing 18,712 BTC worth $1.29 billion on its balance sheet.
Grayscale-linked wallets bought 510,387 HYPE worth $24.95 million as 21Shares (THYP) and Bitwise (BHYP) spot HYPE ETFs attracted $47.8 million in inflows during their first week.
South Korean funeral firm Bumo Sarang booked an unrealized $33 million loss after channeling $40 million of customer prepayments into a 2x leveraged BitMine Ethereum ETF.

Total Crypto Market Cap Rebounds After Trump’s Iran Tweet

The total crypto market cap rebounded by 0.65% in the past 24 hours, adding $16.7 billion to reach $2.57 trillion. The bounce came after Donald Trump’s social media post on May 20 promising to “end that war very quickly” with Iran, sparking a wave of risk-on sentiment across digital assets.

Short liquidations worth $184.59 million over the past 24 hours amplified the move, with BTC-USDT taking the largest share of the squeeze. The $2.50 trillion base has held, with buyers stepping in at the level multiple times during the recent slide.

Crypto Liquidation Map: Coinglass

The next decisive level for the total crypto market cap sits at $2.62 trillion, the 0.236 Fibonacci level of the recent leg. Any move below this is a rebound rather than a trend shift. A daily close above $2.62 trillion opens the path toward $2.75 trillion and $2.81 trillion.

TOTAL Crypto Market Cap: TradingView

If $2.50 trillion holds, the recovery has room to extend toward $2.62 trillion. If $2.50 trillion breaks, the lower supports at $2.47 trillion and $2.38 trillion come into view.

Bitcoin Price Avoids Channel Breakdown as Short Squeeze Hits

Bitcoin (BTC) price added 0.61% to $77,951 as the Trump-driven relief rebound pulled BTC away from the lower boundary of a rising channel that has held since March 29. BTC-USDT shorts were the largest liquidation block in the past 24 hours, with the squeeze giving spot buyers room to defend the channel.

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The bounce has not confirmed bullish strength yet. Bitcoin needs to hold above $75,962, the bottom of the rising channel, to avoid a structural breakdown. A reclaim of $80,151, the 0.236 Fibonacci level, would require a 2.79% upside move from current levels.

Above $80,151, the next resistance sits at $82,742 (0.382 Fibonacci level), followed by $84,837 at the 0.5 Fibonacci level. The clean channel breakout only confirms above $86,931, the 0.618 Fibonacci level.

Bitcoin Price Analysis: TradingView

A daily close above $80,151 targets $82,742 and $84,837. A close below $75,962 confirms a channel breakdown and exposes deeper losses.

Hyperliquid (HYPE) Surges 17% as Grayscale Drives ETF Hype

Hyperliquid (HYPE) climbed over 17% to $56.26, the strongest performer among the top 100 cryptocurrencies in the past 24 hours. While the broader rebound rode the Trump-tweet sentiment, HYPE has its own catalyst in the form of heavy ETF accumulation. Grayscale-linked wallets bought 510,387 HYPE worth $24.95 million in recent days, with Grayscale’s S-1 registration for a HYPE ETF dating back to January.

The 8-hour chart shows a roughly 50% rally from the May 14 swing low to the recent peak at $57.11. The structure resembles the pole of a bull flag pattern, with a small consolidation expected before the flag forms. The most recent 8-hour candle showed a volume drop, hinting at possible profit booking.

For the pattern to stay intact, HYPE must hold above $54.70, the 1.618 Fibonacci level of the last swing. A drop below $49.23 would invalidate the potential bull flag setup. Upside targets sit at $63.54 (2.618 Fibonacci level), $72.39, and $77.86.