The crypto market moved higher on Tuesday, gaining around 4% to cross the $2.6 trillion mark, as sentiment improved across global markets.
Bitcoin (BTC) led the rally, rising nearly 6% to a four‑week high near $74,800 before easing slightly. Ethereum (ETH) outperformed with an 8% jump, while BNB, XRP, Solana, and Dogecoin posted steady gains between 2% and 5%.
Liquidations Add Momentum
Part of the move was driven by derivatives markets, where more than $430 million in short positions were liquidated. As prices moved up, bearish traders were forced to buy back in, adding fuel to the rally.
The broader tone has also improved, with market sentiment moving back toward neutral after recent volatility.
Easing Tensions Lift Risk Appetite
The rally comes as geopolitical concerns show signs of cooling. Reports that Iran may be open to negotiations with the U.S. have helped ease fears of further escalation tied to the Strait of Hormuz situation.
At the same time, oil prices have dropped sharply, reducing inflation pressure and supporting risk assets like crypto.
Softer U.S. Data Supports Outlook
Recent U.S. economic data added to the positive backdrop. Inflation came in softer than expected, while labor market indicators pointed to gradual cooling.
Together, these signals have strengthened expectations that the Federal Reserve could move toward rate cuts later this year, which typically supports liquidity and risk assets.
For now, crypto is moving in line with broader markets, with the latest rally reflecting a renewed shift toward risk‑on sentiment.
