The crypto market experienced a significant surge today, driven by a confluence of factors including eased trade tensions, a massive short squeeze, and a bullish technical breakout in total market capitalization. This positive momentum has resulted in the total crypto market cap increasing by 6.7% to $2.94 trillion, with Bitcoin (BTC) and Ethereum (ETH) seeing substantial gains of 6.4% and 13% respectively. Market analysts attribute this rise to three key drivers:
* **Easing Trade Tensions:** A renewed optimism surrounding the potential de-escalation of the U.S.-China tariff standoff, fueled by statements from Treasury Secretary Scott Bessent and President Trump, has boosted market risk appetite, leading investors to gravitate towards digital assets.
* **Short Squeeze Unwinds**: A massive short squeeze is driving price increases, with CoinGlass data revealing a staggering $540 million in bearish bets unwinding over the past 24 hours, particularly contributing to Bitcoin’s ascent beyond $93,000. This significant liquidation event mirrors similar spikes seen in previous bull cycles, including the Nov. 6 surge.
* **Technical Breakout Confirms Bullish Trend Reversal:** A decisive breakout from a multimonth falling wedge pattern on the TOTAL chart, representing the combined market cap of all cryptocurrencies, suggests a trend reversal and bullish momentum. This break above the 50-day simple moving average (SMA) signifies a potential for further growth, with price now targeting resistance levels between $2.93 trillion and $2.94 trillion.
Will Bitcoin reach $95k? The market is poised for continued gains with current momentum, though it faces resistance at major moving averages that could test bullish resolve.