Here’s Why the Crypto Market Is Rising Again With Bitcoin Back Above $70K

Crypto is higher today, with total market value at $2.42 trillion, up 2.6% in the last day. The Bitcoin price is also up, trading near $70,347 after a 2% rise.

Other major coins are rising as well. Ethereum is up 1.5%, BNB has added 2.6%, Solana is up more than 5%, and XRP is leading the market with a 12% jump.

So what’s actually driving this bounce?

Softer Inflation Data Sparked a Relief Rally

One of the main reasons behind today’s pump is macro news out of the United States. The latest Consumer Price Index report was released, with inflation increasing 2.4% year over year, slightly less than expected.

This was just enough to fuel the notion that the Federal Reserve will begin cutting interest rates sooner rather than later. Lower rate expectations usually support risk assets, and crypto reacted quickly.

After weeks of selling pressure, traders were already looking for an excuse to buy back in, and the CPI report provided that spark.

Bitcoin’s Bounce Pulled the Whole Market Up

Bitcoin had been trending down towards the low $60,000s earlier this month, so it’s good to see this move back above the $70,000 level.

When the BTC price started to move higher, it’s not surprising to see the rest of the market follow suit.

That’s exactly what happened today, with altcoins showing much stronger percentage gains than BTC.

Speculative Money Is Flowing Into Altcoins Again

Another major factor driving the recent price move is the return of speculative trading. High volatility coins have been leading the market higher, and meme coins and smaller altcoins have been rising crucially.

The PEPE price surged nearly 28%, and some niche names like SPACE exploded more than 100% in a single day.

This tells the market is in “risk-on” mode again, at least in the short term. Spot trading volume is also rising, showing that buyers are stepping back in after the recent dip.

Read Also: Here’s Why PIPPIN Price Is Still Pumping

Washington Is Starting to Sound More Bullish

There’s also a growing regulatory narrative supporting crypto right now.

A viral post from Crypto Patel highlighted comments from Patrick Witt, a White House official tied to digital asset policy, saying that “trillions of dollars in institutional capital” could enter the space once regulatory clarity arrives.

The CLARITY Act is expected to pass by spring, and traders are already positioning for what that could mean if big institutions finally get the green light to move in at scale.

Even small signals like this can have an outsized impact when sentiment has been deeply negative.

Can This Rally Hold?

The big question now is whether this bounce has real follow-through or if it fades quickly.

The market needs to stay above $2.39 trillion to keep this bounce going. If prices keep climbing, the next major level to watch is around $2.57 trillion.

Still, sentiment is not fully back. The Fear & Greed Index remains in Extreme Fear, showing traders are still cautious.

This rally is still fragile, and upcoming Fed commentary or ETF flow data could decide what happens next.

Today’s crypto pump appears to be a relief move following a difficult month of selling. The lower inflation figures allowed the market to catch its breath, the Bitcoin price surged back strongly, and the altcoins with high beta attracted investors.

There are also indications of more positive US regulations in the pipeline, which is helping institutional investors remain positive.

The market is recovering, but we need to see if the buyers can hold up these levels or if the market sells off again.

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