Bitcoin and top altcoins like Hedera Hashgraph (HBAR), Pudgy Penguins (PENGU), Mog Coin (MOG), and Stellar Lumens (XLM) are going up today, continuing a crypto rally that started last week. This article explains some of the top reasons why this rally is happening.
Fear and Greed Index Points to a Risk-On Sentiment
The crypto rally is happening at a time when the Fear and Greed Index is pointing to a risk-on sentiment in the market. Data shows that the crypto fear and greed index has jumped to the greed zone of 65.
Similarly, the stock-based index has moved to the extreme greed area of 75. Stocks and cryptocurrencies do well when market participants are greedy.
This greed is happening as investors demonstrate resilience, despite Donald Trump’s warnings of further tariffs. For one, the ongoing crypto rally is happening after Trump warned of tariffs on Canada, Mexico, and the European Union.
Crypto Rally Happens Ahead of Crypto Week
The crypto market rally is happening as investors wait for the upcoming “Crypto Week.” This crypto week is notable because the US House and the Senate will consider some notable bills. The three of them will be the GENIUS, CLARITY, and anti-CBDC.
The GENIUS Act, which passed in the Senate, focuses on stablecoins and has high chances of passing in the House. Further, the CLARITY Act focuses on the role of the SEC and CFTC in regulating cryptocurrencies.
Therefore, the crypto rally is happening as investors anticipate more clarity in the industry.
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Rising Wall Street Demand
Further, Bitcoin and altcoins are going up as investors react to the ongoing demand from Wall Street investors. Recent data shows that top crypto ETFs are seeing substantial inflows.
For example, all Bitcoin ETFs have added over $52 billion in assets since their approval in January last year. Similarly, the spot Ethereum ETFs have added over $5.2 billion, while the recently launched SSK and XXRP ETFs have had millions of inflows.
Federal Reserve Interest Rate Cuts
The crypto market rally is happening because of the potential for interest rate cuts by the Federal Reserve. Donald Trump has called for a 300-basis-point cut.
While the Fed has urged patience, analysts anticipate that the bank will start cutting in the coming months. The most likely scenario is that the bank will slash in September, and many more next year. Cryptocurrencies and stocks tend to perform well when the Fed is cutting rates.
Furthermore, the rally is due to Bitcoin forming numerous bullish patterns, as we mentioned earlier. It formed a golden cross, cup-and-handle, and a bullish flag, pointing to more upside.
READ MORE: XLM Price Prediction: Here’s Why Stellar Token Could Surge Soon
