Why Is The Crypto Market Up Today?

After a few days of consolidation following last week’s Bitcoin ETF approvals, the crypto market pumped late Tuesday night. The total cryptocurrency market capitalization is up around 2% in the last 24 hours to above $1.7 trillion.

Bitcoin, the largest cryptocurrency, has gained 2% to trade around $43,300. Ethereum, the second-largest crypto, is up 4% to approximately $2,600 per coin (at the time of writing).

According to crypto trader and analyst Arthur Hayes, the recent Bitcoin ETF hype has been a distraction from the key driver of crypto prices – liquidity flows. As he explained on Twitter:

“Eye on the prize. In the short-term the ETF is a distraction. $ Liquidity is all that matters to the general direction of #crypto prices. Things are going to get interesting once RRP dips below $500bn.”

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Hayes believes that as liquidity from the Fed’s overnight reverse repo program declines below $500 billion, it could catalyze the next crypto market rally.

From a technical perspective, Bitcoin is seeing bullish momentum build. The leading cryptocurrency has established a strong support around the $41,000 level that has held for almost 2 months. On the other hand, $48,250 is providing stiff resistance, which aligns with the 4.236 Fibonacci extension level.

The daily Relative Strength Index (RSI) reading for Bitcoin stands at 58. This indicates there is still room for this rally to continue before hitting overbought territory. The RSI measures the speed and change of price movements, and a reading of 70 generally signals overbought conditions. With Bitcoin’s RSI below 60, this implies there is further upside potential for this rally.

Source: TradingView

Solana (SOL) is one of the top performers today, up around 5% to trade around $100. Solana appears to be breaking out from a bull flag pattern on the 4-hour chart.

According to analyst Ali, a sustained close above $106 could trigger a 47% price surge toward the $150 – $165 range for SOL.

The broader crypto market momentum remains positive, especially for altcoins, following last week’s ETF-fueled Bitcoin breakout. Liquidity flows and technical patterns show the potential for further upside.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.