Top 5 Reasons Why the Crypto Market Is Going Up Today

Key Insights

• Crypto market rallies as US Spot Bitcoin ETF continues to attract institutional interest.
• Bitcoin surged 3% to $105,565, with $45M in short liquidations and open interest rising 7% to $73B.
• The U.S. Senate advanced the GENIUS Act with a 66–32 vote, pushing stablecoin regulation closer to federal approval.

The crypto market is showing strong momentum as Bitcoin crosses a key resistance level. Investors are returning in large numbers, driven by macroeconomic shifts, favorable legislation, and large-scale institutional participation. Several global developments have combined to lift sentiment across the cryptocurrency space today. Here are the top five reasons the market is gaining ground.

Crypto Market Update: Bitcoin Price Surges Past $105,000

The crypto market rallied today as Bitcoin’s price climbed over 3%, reaching above $105,000. This move brought the asset within 4% of its all-time high.

The rise followed days of consolidation and suggests growing buyer strength. According to Coinglass, open interest in Bitcoin futures has grown 7% to $73 billion. Over $45 million in short positions were liquidated in the past 24 hours.

This rally has also pushed the 50-day moving average closer to the 200-day level. Market analysts expect a “golden cross” to form soon. This technical event is often followed by a strong upward trend. Bitcoin remains the largest digital asset and usually drives the direction of the broader crypto market. As it gains, other assets tend to follow.

Crypto Market Advances As Institutional Interest Soars

Institutional interest in the crypto market also remained strong, with spot Bitcoin ETFs recording total inflows of $667 million according to Farside investors data. BlackRock’s iShares Bitcoin Trust (IBIT) led the way with $306 million in net inflows, followed by Fidelity’s FBTC and Ark Invest’s ARKB, which attracted $188 million and $155 million, respectively.

These consistent inflows suggest growing demand from large investors seeking regulated exposure to digital assets.

IBIT has reported net inflows in 23 of the last 24 trading sessions, accumulating $6.5 billion in new investments to date. Over the last four sessions alone, it attracted $1.1 billion, showing continued momentum.

Market analyst Nate Geraci noted this persistent trend as a sign of institutional confidence. The steady rise in ETF demand is contributing to positive sentiment in financial markets and reflects broader interest in crypto-related financial products.

GENIUS Act Advances to Regulate Stablecoins

Another possible reason why the crypto market is going up is the GENIUS Act bill advancement. The U.S. Senate passed a procedural vote to move forward the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.

The vote passed 66-32, reflecting support from both parties. The bill seeks to regulate stablecoins with clear rules. Issuers would be required to maintain 1:1 dollar reserves and come under federal oversight if they manage more than $10 billion in circulation.

Senator Kirsten Gillibrand said the legislation “will provide regulatory clarity… and reaffirm the dominance of the U.S. dollar.” The Act is expected to boost confidence in the stablecoin sector, which serves as an on-ramp to the broader crypto market.

Its approval in the House could lead to a well-regulated environment for stablecoin adoption and crypto use in the U.S.

Crypto Market Soars As Economic Concerns Bolster Confidence

Last week, Moody’s downgraded the U.S. credit rating from Aaa to Aa1. This decision raised concerns about the country’s long-term fiscal health.

Moody’s cited growing entitlement spending, weak tax revenues, and political gridlock as reasons for the downgrade. The national debt is projected to reach $36 trillion by the end of the year.

This news triggered a move from traditional assets to alternatives like Bitcoin and gold. Bitcoin is now being seen by some as a hedge against U.S. dollar weakness and fiscal instability.

As Treasury yields rose above 5% before easing back, real yields on TIPS reached their highest level since 2001. Analysts like Arthur Hayes and Paul Tudor Jones expect this shift to drive capital into the crypto market.

China Cuts Interest Rates to Support Economic Growth

The latest policy rate moves in China might have also helped gains in the broader crypto market. China decreased its main interest rate for lending for the first time since October.

The interest rate for the one-year loan prime dropped to 3%, and the rate for the five-year loan prime for mortgage pricing was set to 3.5%.

The steps are intended to boost borrowing and aid the country in bouncing back economically.

Deposit rates were also lowered by five key state-run banks, a move that could help people increase their spending. According to analysts, while the cuts were not dramatic, they point to a change towards making policy easier.

A lower yuan and more cash availability in China might lead investors to purchase digital assets as an alternative.

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