4 Key Reasons Why the Crypto Market Is Rallying Today – Can Bulls Keep the Momentum?
The overall crypto market capitalization recorded an 11-week surge on Wednesday, with Bitcoin (BTC) reaching $79,000, and Ether (ETH) reaching $2,400. The bullish event occurred as market confidence strengthened, with receding recession risks, despite war-driven oil price hikes.
Traders are now watching whether Bitcoin and Ether will go for further gains or a short-term correction could occur if economic recession risks persist.
The Nasdaq-100 index reached a record high on Wednesday as traders anticipated Tesla’s (TSLA US) quarterly earnings. Brent crude prices increased by 9% over two days after reports said that Iran targeted two vessels in the Strait of Hormuz. Moreover, increased energy prices could pave the way for economic stimulus, which is expected to boost business investments and stabilize financial markets.
US liquidity plans and Bitcoin ETF inflows could allay recession concerns
US President Donald Trump reportedly said during a CNBC interview, “the Federal government should help” Spirit Airlines, a budget carrier that has experienced bankruptcy twice since 2025.
The Trump administration has funded Intel (INTC US), the chip-making firm, Southern Company (SO US), an energy utility holding company, and L3Harris (LHX US), an aerospace and defense contractor.
Numerous US government interventions in private firms and signaling new credit facilities for international patterns help resolve global cash-flow shortages.
According to Scott Bessent, the US Treasury Secretary, both the US and the United Arab Emirates would benefit from the currency exchange line, which is intended to “maintain order in the dollar funding markets.”
Several US allies are facing pressure to sell US bonds to raise dollars for local defense, imports, and liquidity amid plunging oil prices and disruptions in the Strait of Hormuz. The US provides a critical dollar safety net by offering currency swap lines, which prevent its foreign allies from liquidating their Treasury holdings. This could help stabilize bond market interest rates, preventing a spike in borrowing rates and sudden financial freeze.
The US-listed Bitcoin exchange-traded funds (ETFs) recorded six consecutive days of inflows, adding $1.5 billion, which has helped boost overall market sentiment. Moreover, the launch of Morgan Stanley Bitcoin Trust (MSBT) reached $145 million in total assets within three weeks. It has also improved Bitcoin’s role even during global and socioeconomic uncertainty.
Bitcoin miner profitability reduces short-term selling pressure
Bitcoin has finally reached $79,000, meaning miner profitability hit its highest level since January. Miners have gained attention as major firms sold significant Bitcoin holdings to fund investments in data centers and AI infrastructure.
Major companies include MARA Holdings (MARA US), Riot Platforms (RIOT US), Core Scientific (CORZ US), and Cango (CANG US). While higher profitability does not guarantee reduced selling pressure, the bullish state could create a way for more accumulation.
Moreover, a short-term correlation with US stock markets continues to dictate cryptocurrency trends. So, the US-Iran war and tech earnings remain major factors for trader sentiment.
The US government signaled stimulus measures to secure liquidity and address credit concerns. At the same time, Bitcoin and Ether seem to continue on an upward movement.
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