The total market capitalization of cryptocurrencies has reached $2.96 trillion after a recent dip. The market saw a 1.5% increase over the last 24 hours, with all top 10 cryptocurrencies experiencing growth. What has caused this rebound?
Trump’s Tariff Delay Sparks Market Optimism
US President Donald Trump announced a 30-day delay in implementing a 25% tariff on auto imports from Canada and Mexico. This temporary resolution was achieved after discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum. The delay has averted immediate trade disruptions and reduced macroeconomic pressure, positively impacting the crypto market.
Stock Market Gains Add to Crypto Rally
The US stock market reported a rise of 1.05%. The S&P 500 index increased from $5,781.50 to $5,842.62. With this positive movement, crypto-related stocks also gained momentum. MicroStrategy's stock price rose from $277.54 to $308.55, marking an 11.17% increase. Coinbase Global's stock price grew from $214.64 to $222.45, representing a 3.63% surge.
Weaker US Dollar and Interest Rate Speculation
The US Dollar Index has declined by 3.21% over the last four days. A weaker dollar may signal economic concerns and lead to higher import prices. This could prompt the US Fed to adjust interest rates. There is a 52% probability of a Fed rate cut in June 2025. Lower interest rates might encourage investors to seek higher returns in riskier assets like cryptocurrencies.
The crypto market is showing resilience with positive economic events and technical indicators at the forefront. If the trend continues, a bullish breakout could be on the horizon.
