Why is the crypto market up today?

Key catalysts driving the crypto market up today include:

• Optimism over easing US-China trade-war tensions.

• A “short squeeze” in the derivatives market, with over $540 million in short liquidations in the past 24 hours.

• Strengthening technical setup with a break of a multimonth downtrend.

The cryptocurrency market is up today, with the total market capitalization rising by approximately 6.7% in the last 24 hours to reach $2.94 trillion on April 23.

The gains were led by Bitcoin (BTC) and Ether (ETH), which have risen around 6.4% and 13%, respectively.

Crypto market performance April 23. Source: Coin360

Easing US-China trade-war tensions

A significant catalyst for today’s crypto rally is the potential de-escalation of the trade war between the United States and China. 

Recent statements from US Treasury Secretary Scott Bessent on April 22 contributed to easing investor concerns. As reported by Bloomberg, Bessent described the tariff standoff with China as "unsustainable," hinting at an increased likelihood of de-escalation.

Source: Cointelegraph

Later, while speaking to reporters at the White House, President Trump said that the US tariffs on goods from China "will come down substantially" from the current 145% level, signaling a possible thaw in economic relations. 

Trump also added that he has no plans to fire Federal Reserve Chair Jerome Powell, following recent pressure on the head of the US central bank to lower borrowing rates.

This renewed confidence in global trade stability has contributed to the latest rally in crypto prices, with Bitcoin climbing above $94,000 on April 23, with altcoins following suit.

Massive short liquidations fuel price surge

Another driver of today’s rally is a wave of short liquidations that have triggered a powerful “short squeeze,” as data from CoinGlass shows.

In the past 24 hours, over $624 million in crypto positions have been liquidated across the crypto market, with $545 million representing short position liquidations.

Total crypto liquidations. Source: CoinGlass

“Short squeeze!”  remarked CoinGlass in response to today’s liquidation event, adding:

The magnitude of this liquidation mirrors the Nov. 6 liquidation event, where more than $426 million in short leveraged positions were liquidated, accompanying a 16% increase ($356 billion) in the total crypto market capitalization on the same day.

The short squeeze has played a crucial role in amplifying the current rally, particularly for Bitcoin, which has led the market’s charge past $93,000.

Related: Bitcoin analysts target $95K as Trump’s trade war cools — Do BTC futures agree?

Total market cap validates a falling wedge pattern

Finally, the crypto market’s technical outlook is providing a bullish foundation for this rally. TOTAL, the combined market capitalization of all cryptocurrencies, has recently broken out of a multimonth downtrend, specifically a falling wedge pattern, as observed on the daily chart below. 

This breakout, confirmed by a retest of the upper resistance line at $2.6 trillion and the ultimate breaching of the 50-day simple moving average (SMA) at $2.68 trillion, is a strong bullish signal. 

TOTAL is now eying the technical target of the wedge at $3.12 trillion, representing a 7.5% increase from the current level. 

However, to reach the target, bulls must first overcome a stiff barrier presented by the 100-day and 200-day SMAs between $2.93 trillion and $2.94 trillion.

TOTAL daily chart. Source: Cointelegraph/TradingView

The relative strength index (RSI) has climbed from its low of 30 on April 7 to 65 at the time of writing, indicating an increasing bullish momentum.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.