Cryptocurrency Market Soars Today : What’s Behind the Surge ?
Cryptocurrency market sees a notable uptick today as investors await Trump's announcement on tariffs. What are the main drivers behind this recovery?
The Calm Before the Storm ?
The recovery of the cryptocurrency market closely aligns with that of the US stocks, amidst economic uncertainty ahead of Trump’s Independence Day. The American president is set to unveil new protectionist measures that could impact global growth.
Despite these trade tensions, investors seem to be cautiously optimistic. Bitcoin has gained over 3% to climb back above $84,000, while Ethereum surpassed $1,800. This positive trend is also seen in altcoins, with increases of over 6% for DOGE and Cardano.
According to analysts, this surge reflects a “breather” before a possible storm as investors position themselves ahead of Trump’s decisions. Although the outcome of the trade conflict remains uncertain, a more favourable scenario than expected could provide a much-needed reprieve for the markets.
Encouraging Capital Inflows for Cryptocurrencies
Beyond short-term fluctuations, investment flows into crypto funds remain overall positive. Over the past week, these products have recorded $226 million of inflows following five consecutive weeks of outflows.
This trend reflects the ongoing confidence of institutional investors in digital assets, albeit in a “cautious” approach, according to analysts at CoinShares. Bitcoin notably attracted $197 million, while altcoins saw capital inflows for the first time in five weeks.
From a technical standpoint, the cryptocurrency market also shows encouraging signals. After dipping into oversold territory, the Relative Strength Index (RSI) suggests a resurgence of buyers to absorb selling pressure. Moreover, the formation of a potential double bottom hints at a consolidation and a more sustainable recovery.
Gaston Cuny
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
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