Why is Crypto Market Up Today: Altseason Starts or Crash Calls?

Why is Crypto Market Up: Trump-Powell, and Metaplanet BTC Buy Effect?

The crypto sector is seeing strong momentum today. The overall global crypto market cap has risen to $2.75 trillion, an increase of 3.06% over the last 24 hours. Volumes are also increasing — the overall market volume has increased by 49.38%, reaching $67.65 billion. Stablecoins alone constitute 92.69% of this volume, with DeFi trading contributing 8.11%, amounting to approximately $5.48 billion.

Bitcoin dominance has also increased by a bit, standing at 63.08%, an increase of 0.28% from yesterday. BTC is currently valued at $87,262.69, and its market capitalization has reached $1.73 trillion, with over $27.26 billion being traded within the last 24 hours.

Why is Crypto Market Going Up? 

Trump vs. Powell Fuel Surge: A clash between Donald Trump and Fed Chair Jerome Powell is stirring financial sector uncertainty and boosting crypto prices. Trump criticized Powell as being "too late and wrong" on interest rates, adding that his removal "cannot come fast enough." Powell responded by asserting the Federal Reserve’s independence and clarified he won’t resign, noting a Fed Chair can only be removed “for cause”—meaning legal or ethical violations, not policy disagreements. The political pressure on financial policy is unsettling traditional industry, prompting investors to seek safety in crypto assets like BTC as a hedge against potential economic volatility.

Metaplanet's Bitcoin Purchase Shift Market: Japan's Metaplanet initiated a rally after buying 330 BTC worth $28.2 million, increasing its overall holdings to 4,855 BTC worth approximately $500 million. The firms bought on average at $85,605 per coin, showing high confidence in the long-term value of BTC. 

Source: Metaplanet

This is similar to MicroStrategy's investment strategy, employing dollar-cost averaging to ride industry fluctuations. Both companies are constituents of Bitwise's OWNB Index, which monitors companies significantly exposed to BTC. After the news, the price of Bitcoin increased more than 3% in one day. Along with growing fear in the conventional sectors, this upsurge further increased the interest of investors in digital assets.

Fear and Greed Index Indicates Recovery

Another supporting the bullish mood is the Fear and Greed Index, which has increased from 31 last week to 39 today. Though still in "fear" territory, the direction of the move indicates increased confidence in the sector. 

Historically, it has been a good idea for most investors to buy during fear times.

Beginning of Altcoin Season or Market Crash Ahead?

Crypto expert CryptoJack believes we might be entering a new altseason. That means smaller coins or tokens could see major gains soon. Currently, most altcoins are in the green:

• Ethereum is up 3.21%

• XRP rose 3.53%

• Solana gained 0.88%

• Dogecoin jumped 4.81%

Looking at Bitcoin’s past price charts, every time a "Bullish Cross" formed—in 2015, 2019, and 2023—it led to a massive rally. For example, Bitcoin went from $200 to $20,000 in 2017 and from $3,800 to $69,000 in 2021. We are currently seeing a similar pattern again in 2024, with Bitcoin now crossing $60,000 and rising.

Source: X

However, it's not all clear skies. With future crucial events such as Trump's tariff announcements, Federal Reserve meetings, and potential new financial regulations on the horizon, there remains some threat of market retreats. Investors must exercise caution and always conduct their own research before deciding.

Conclusion

The crypto industry is experiencing solid momentum with increased tensions in the traditional finance space, a large Bitcoin purchase by Metaplanet, and enhanced market sentiment. The recent upsurge in Bitcoin and altcoin prices has convinced some that a new season of gains has begun. Nevertheless, the crypto space remains extremely volatile. It's wise to remain well-informed and guarded.