A cautious crypto market rally is underway, with top cryptocurrencies like Decred, ZKsync, Quant, Internet Computer (ICP), Official Trump, and Aerodrome Finance leading the charge with gains of over 10%. This article explores why Bitcoin and most altcoins are going up and whether these gains are sustainable.
Crypto Market Rally Boosted by Tariffs Hope
The ongoing crypto market rally is happening after odds of the Supreme Court halting Donald Trump’s tariffs jumped on Polymarket and Kalshi. These hopes rose after oral arguments, during which some conservative justices questioned the legality of the tariffs, which are forms of taxation.
A legal official BanklessTimes talked to noted that the court may rule against Trump, arguing that the president has more legal tools to implement his tariff policy. This includes Section 301, which allows him to add tariffs to counter unfair trade practices by other countries.
Trump’s tariffs have negatively impacted the crypto market by pushing inflation higher and making it more difficult for the Federal Reserve to cut interest rates.
Top Crypto News Has Contributed to the Rebound
The cryptocurrency market rally is also driven by important news in the industry. One of the most important crypto news stories happened at the Ripple Swell event in New York, where Citadel and Fortress announced a $500 million investment into Ripple Labs at a $40 billion valuation.
Another important crypto news happened at Chainlink’s SmartCon event. In a statement, Chainlink said it had deepened its partnerships with companies such as S&P Global, Aave, Lighter, WisdomTree, GSR, and Apex Global.
Meanwhile, a Robinhood report showed that its crypto revenue jumped by a whopping 339% in the third quarter, outpacing other crypto companies. Also, RLUSD stablecoin will now power Mastercard’s credit card settlements.
The other notable news is that ZKsync users voted in favor of the new proposal regarding its tokenomics. This includes giving the ZK token some utility and enabling token burns, which will reduce the number in circulation.
Rising Open Interest in the Futures Market
One main reason the crypto market crashed recently is that investors began deleveraging after the $20 billion liquidation event on October 11. This liquidation prompted more people to slash their leverage.
Now, the ongoing crypto market rally is accompanied by a jump in futures open interest. Data shows that this interest rose by 4% in the last 24 hours to over $144 billion.
The jump in open interest has been accompanied by the ongoing crash in liquidations. The liquidations over the last 24 hours fell 82% to $366 million. A combination of rising open interest and falling liquidations is usually a highly bullish sign in the crypto market.
Still, it is highly likely that the ongoing crypto market rally is part of a dead cat bounce, a brief rebound that occurs during a bear market.
READ MORE: Top Reasons Why the BitMine Stock Price Crash May Continue
