⚡️ Crypto market adds $140 billion in hours; Here's why

The cryptocurrency market has staged a sharp rebound within hours, adding nearly $150 billion in value over the past day.

By press time, the total crypto market capitalization stood at $2.41 trillion, recovering from a 24-hour low of $2.27 trillion, an increase of about $140 billion.

Leading cryptocurrencies drove much of the recovery with Bitcoin (BTC) climbing 4.74% to $70,862, maintaining its dominance with a market capitalization of roughly $1.4 trillion.

Ethereum (ETH) rose 3.40% to $2,063, bringing its valuation close to $248.9 billion. Other large-cap assets also advanced, with BNB trading around $647.76 and holding a market cap of $88.3 billion, while XRP rose to $1.41, pushing its valuation to about $86.1 billion.

🔸 Why crypto market is rising

Several developments appear to be fueling the rapid recovery after weeks of volatility. A key driver has been shifting geopolitical sentiment following signals that tensions in the Middle East may be easing.

Comments from President Donald Trump suggesting the conflict involving Iran could conclude soon reduced global risk anxiety. As concerns softened, oil prices declined, and the U.S. dollar weakened slightly, conditions that often support risk assets such as cryptocurrencies.

Market mechanics also accelerated the rally. Notably, in recent days, traders had accumulated large short positions amid fears tied to geopolitical instability and broader macroeconomic uncertainty.

As prices began to rise, many of these bearish bets were forced to unwind. The resulting liquidations triggered a short squeeze, adding momentum across major digital assets, particularly Bitcoin and leading altcoins.

Proposed frameworks such as the Clarity Act and related stablecoin legislation aim to define regulatory responsibilities and establish a more structured environment for crypto markets, helping ease long-standing concerns over regulatory uncertainty.

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