On Tuesday, April 22, 2025, the crypto market surged back to life as several assets, including Bitcoin and Ethereum, saw notable increases in value. Bitcoin, the largest asset in the market, surged past the $94,000 mark, and Ethereum saw an 11% increase, breaking past the $1,800 region. The meme sector was not left behind as it rallied by 15% alongside other notable sectors, including RWA and AI.
The bullish momentum was pinned on the statement of US Treasury Secretary Scott Bessent, who, in a closed meeting, hinted that the trade standoff between the US and its trade partner China would not last for long. Further, there were rumors that US President Donald Trump told reporters at the Oval Office that there are plans in motion to cut a deal with China to slash the tariffs.
The trade war, which started as a result of the stifling tariff imposed by the US on its trade partners and the counter-tariff by China, wreaked havoc not only on the crypto industry but also on the stock market. Therefore, the possibility of an imminent cease-fire between the two nations has brought relief for the crypto industry and the stock market, as US stock indexes also posted 2.5% gains.
Meanwhile, according to Coinglass data, short traders were hit heavily as over $500 million was liquidated in short positions as shorters scampered for safety, indicating that smart money investors have gained renewed interest in crypto assets. While the recent bullish momentum has pushed Bitcoin to the $94,000 level, analysts have speculated that the bullish trend will be confirmed if the bulls push Bitcoin price to a major high around the $95,000 region. So, we wait to see how events will unfold in the coming days.
