Crypto Market Soars: What’s Driving Today’s Surge? | 2025
What’s Driving Today’s Surge?
As of March 6, the global crypto market capitalization has reached an impressive $3.10 trillion, marking a significant 5% increase over the last 24 hours. Leading this intraday rally are top cryptocurrencies, Bitcoin and Ether, each experiencing a robust daily gain of 5.6%. This remarkable recovery in the crypto market closely mirrors similar rebounds in the US stock market, primarily driven by easing investor concerns following Donald Trump’s recent tariff delay.
Market Reactions to Tariff Delays
Earlier this week, the announcement of potential tariffs had ignited fears of a looming trade war, which in turn rattled global financial markets and negatively impacted risk assets, including cryptocurrencies. However, following productive negotiations with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, Trump agreed to a 30-day delay on these tariffs, effectively easing tensions and restoring investor confidence.
Shifting Fed Rate Expectations
In addition to the tariff news, expectations surrounding Federal Reserve rate cuts are also influencing market sentiment. Analysts are now pricing in a greater likelihood of rate cuts in 2025, with market participants estimating a 52% chance of a 25 basis point rate cut as early as June. “Looking at the trend, sentiment appears to be shifting towards more easing, possibly driven by economic data, inflation trends, and Fed commentary,” noted market commentator Walter Bloomberg in a March 5 post on X.
Technical Analysis of the Crypto Market
From a technical standpoint, today’s gains in the crypto market are part of a broader rebound that began at a critical support confluence. This includes the psychological level at $2.80 trillion and the 200-day simple moving average (SMA). Currently, the total market cap stands at $2.95 trillion, with aspirations to break above the resistance zone situated between $3.1 trillion and $3.28 trillion, where both the 100-day and 50-day SMAs are located.
Building Bullish Momentum
The daily relative strength index (RSI) has shown a significant increase, rising from oversold conditions at 25 on February 20 to its current value of 47. This upward movement suggests that bullish momentum is building, indicating a potential continuation of the positive trend in the crypto market.
Conclusion: Navigating the Crypto Landscape
While the current surge in the crypto market is encouraging, it is essential to approach investments with caution. This article does not provide investment advice or recommendations. Every investment and trading move carries inherent risks, and readers are encouraged to conduct their own research before making any financial decisions. For more insights, check out the original article here.