The cryptocurrency market has rebounded to a total capitalization of $2.96 trillion, experiencing a 1.5% increase in 24 hours. Key factors contributing to this revival include a delay in US tariff imposition, positive movements in the stock market, and expectations for potential interest rate cuts, which could drive more investment into cryptocurrencies. Supportive technical conditions suggest further growth may occur.

The cryptocurrency market has recently experienced a resurgence after a previous decline, with the total market capitalization currently at $2.96 trillion. In the past 24 hours, the market has increased by 1.5%, with notable growth in the top ten cryptocurrencies, including Bitcoin (BTC) at 2.7%, Ethereum (ETH) at 1.6%, and XRP at 3.2%. This strong rebound raises the question of what has spurred this increase.

A key factor in this recovery is the recent agreement by former President Donald Trump for a 30-day delay on a tariff implementation, following discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum. This decision has mitigated potential trade disruptions, easing macroeconomic pressures that may have previously affected the crypto market.

Additionally, the US stock market also displayed positive movement, with the S&P 500 index rising approximately 1.05% from $5,781.50 to $5,842.62. Cryptocurrencies, alongside stocks such as MicroStrategy and Coinbase Global, benefited from this upward momentum, with MicroStrategy’s stock increasing by 11.17% and Coinbase’s by 3.63%.

The weakening US Dollar index, which has dropped by 3.21% in the past four days, has led to concerns regarding the health of the US economy. A depreciating dollar can lead to higher import costs, fueling inflation, and prompting the Federal Reserve to consider an interest rate cut. Current reports suggest a 52% likelihood of an interest rate reduction in June 2025, which could push investors towards riskier assets like cryptocurrencies.

The cryptocurrency market’s technical aspects also signify potential growth. The current total market cap stands at $2.96 trillion, above the 200-day Simple Moving Average (SMA) of $2.79 trillion, indicating strong support. Should the market surpass the resistance levels represented by the 50-day and 100-day SMAs, which stand at $3.19 trillion and $3.28 trillion respectively, it could lead to a significant bullish rally. Furthermore, the Relative Strength Index (RSI) is at 47.58, suggesting ample room for further market expansion.

As the crypto market continues to consolidate, it reveals promising technical indicators. If the positive trends persist, a bullish breakout appears imminent, presenting opportunities for traders and investors alike. Market sentiment has notably shifted, reflecting increased confidence in Bitcoin and other digital assets, particularly amidst recent developments regarding Bitcoin reserves and strong endorsements from influential figures in the industry.

In summary, the cryptocurrency market is currently witnessing a revival characterized by significant upward movement across major cryptocurrencies and favorable technical conditions. Factors such as a temporary resolution in trade tensions, positive trends in the US stock market, weakening dollar concerns, and possible interest rate cuts by the Federal Reserve have substantially contributed to this rebound. If these trends continue, a bullish breakout could emerge, reaffirming the upward potential of the crypto market.

Original Source: coinpedia.org

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