Why Is The Crypto Market Up Today? Ethereum Up 11% As Bitcoin Hits $94k

Bitcoin surged past $94,000 on Tuesday, supported by growing optimism in both crypto and traditional markets. The rally follows Treasury Secretary Scott Bessent’s remarks at a private JPMorgan conference in Washington yesterday, where he called the trade dispute with China “unsustainable”.

The gains weren’t limited to Bitcoin. Ethereum rose 11%, while XRP and Solana advanced 5% and 6%, respectively. The global crypto market capitalization climbed back above $3trillion, marking its highest level in more than seven weeks.

Investor confidence also boosted meme coins, which jumped over 15%. Sectors linked to artificial intelligence and tokenized real-world assets recorded solid gains as well.

Short positions see heavy liquidations

Futures traders saw heavy losses as the market moved sharply against short positions. According to Coinglass, more than $581m in derivatives were liquidated in the past 24 hours. Short sellers accounted for nearly $504m of that, as renewed buying pressure returned to Bitcoin.

Data also indicates that long-term holders have resumed accumulating BTC, while short-term holders continue to offload, suggesting increasing conviction among institutional investors.

The US President Donald Trump added fuel to market sentiment by signaling a possible reduction in tariffs on Chinese imports. During a White House press conference yesterday, he described the current 145% rate as excessive and hinted that it would drop significantly — though not to zero.

During the same conference, Trump also stated he has no plans to dismiss Federal Reserve Chair Jerome Powell, amid recent calls for rate cuts from the central bank.

Stock markets responded similarly, with the Dow Jones, Nasdaq, and S&P 500 each climbing over 2.5%.

Earlier this week, Bitcoin appeared to move independently of stocks, rising even as equities declined. However, Tuesday’s synchronized gains suggest that broader investor sentiment remains closely linked across asset classes, especially with trade policy back in focus.

Despite the surge, market liquidity is still considered thin. Tether’s market cap has increased by $2.9bn over the past two months, below its usual 30-day growth trend.

Historically, stronger rallies in BTC have correlated with Tether expansions above $5bn — a threshold not yet reached.