A crypto rally has emerged today, with Bitcoin and most altcoins being in the green. Bitcoin price crossed the important $95,000 resistance level for the first time in months, while the market capitalization of all tokens surpassed $3.2 trillion.
The best gainers were coins like Dash, which jumped by over 50% in the last 24 hours, with its volume soaring to $1.01 billion. Pepe Coin price rose 16%, with volume nearing $1 billion, while Internet Computer (ICP) soared 14%. The other gainers were Story (IP), Optimism (OP), and Starknet (STRK).
The crypto rally came as volume jumped 41% to over $142 billion, and futures open interest rose to $140 billion.
Crypto Rally Happens Ahead of CLARITY Markup
The ongoing crypto rally is happening as regulations in the United States improve. For example, the US passed the GENIUS Act in 2025, establishing rules that stablecoin issuers must follow in the country.
The Senate Banking Committee released the text of the CLARITY Act on Tuesday ahead of the markup on Thursday. Markup is the process by which a bill is prepared and revised in committee before it moves to the Senate. Most analysts believe that the bill will be passed in the coming weeks and that Donald Trump will sign it into law.
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Bitcoin Price Moved Above a Key Level
The other reason the crypto market is rallying is noted in our recent Bitcoin price prediction, where we noted that the coin was slowly forming a highly bullish ascending triangle pattern, characterized by horizontal resistance and an ascending trendline.
In this case, the horizontal line was at $94,468, a level that Bitcoin passed overnight, confirming the bullish outlook. Therefore, it is likely to jump to the next key resistance level at $100,000 in the near term.
Bitcoin normally sets the tone in the crypto industry, and altcoins tend to do well whenever it is rising. They also crash deeper whenever Bitcoin drops a bit.
Rising Fear and Greed Index
Another reason why the crypto rally is happening is that investors are embracing a risk-on sentiment, especially after the latest inflation report, which showed that the core Consumer Price Index (CPI) dropped in December.
Data shows that the Crypto Fear and Greed Index moved from the extreme fear zone of 10 in December to the current neutral point at 52. There are signs that it will move to the greed zone of 60 soon.
Crypto prices tend to rally when the gauge moves from the fear zone to the greed zone, and then start falling when it moves to the extreme greed zone.
The next key catalyst for the crypto rally will come from the Supreme Court, which will deliver its ruling on Donald Trump’s tariffs later today. Most analysts believe the court will rule that the tariffs were imposed illegally, a move that, in theory, would lead to higher prices.
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