The most important reasons why the encryption market is high today

The encrypted currency market raises strong recovery after a sharp decrease. Recently, it has seen 12 % decrease, Loss of approximately $ 400 billion In one day. However, Bitcoin, the largest cryptocurrency in the world by maximum market, wore less than $ 90,000 to more than $ 101,000. Altcoins such as ETHEREUM (ETH), XRP, Solana (SOL) and Dogoin (Doge) witnessed gains between 10 % and 20 %.

So, what drives this huge rotation?

Why the market decreased (and rose again)

The reason for the encryption market was partially due to US President Donald Trump’s announcement of the new customs tariff: 25 % on Mexico and Canada, and 10 % on China. This sparked uncertainty, shaking global markets, including the encryption space.

Things changed when Trump decided to temporarily stop customs tariffs. The President of Mexico Claudia Shinbom A deal with Trump was held to delay the definitions for a month. As part of the deal, Mexico agreed to send 10,000 National Guard soldiers to enhance border security.

Meanwhile, Canadian Prime Minister Justin Trudeau spoke with Trump and suggested a $ 1.3 billion plan to improve border security. This plan includes setting the option of fentanel and enhancing monitoring. Trump confirmed both deals, saying that the talks with both countries will continue.

This temporary delay in definitions helped calm market fears and play a major role in recovering the encryption market.

Institutional purchase at its lowest level

With the low price of Bitcoin, the founding investors have seized the opportunity to buy at lower levels. according to Cryptoquant Maartunn analystCoinbase – an indicator that tracks the Bitcoin request on Coinbase compared to other exchanges that turned into positive, up to +103.6.

This indicates a strong interest in buying institutional investors in the United States

The market will recover – slowly but steadily

Bitcoin has Through 102,000 dollars Mark after reaching the lowest level of $ 90,000, while Ethereum recovered from $ 2,251 to $ 2,827. Meanwhile, the Crypto Fear & Greed index moved to a neutral area with 45, indicating the improvement of market morale.

The Crypto market again proves that it can bounce one of the most difficult challenges.