A crypto rally is happening today, with Bitcoin and top coins like Venice Token, Zcash, Canton, and Monad jumping by over 5%. Bitcoin jumped to $76,000, while Zcash rose to $315. Venice Token has jumped by nearly 1000% from its lowest level this year.
This article explores some of the top reasons why the crypto market is going up today.
Crypto rally is happening as Donald Trump seeks an Iran deal
The main reason why the crypto market is going up is that President Donald Trump is seeking to ink an Iran nuclear deal in the next few days.
In a statement on Monday, Trump talked about the deal he is working with Iran, noting that it will be a better one than the JCPOA, which was reached by President Barack Obama.
Analysts believe that the deal will be similar to the JCPOA, only with a few tweaks. For one, Monday’s statement did not have the threats he made on Sunday, when he said that he would bomb Iran’s critical infrastructure like bridges and power plants.
An end to the war will be bullish thing for the crypto industry because it will lead to lower crude oil and natural gas prices. Indeed, the risk of a deal has pushed Brent and the West Texas Intermediate (WTI) down to $95 and $86, respectively.
Still, the main risk is that the two sides may not reach a deal, leading to the resumption of fighting. A new phase of fighting will likely be more brutal than the first one, with the focus being on the crucial oil infrastructure in the region.
Kevin Warsh’s testimony in the Senate
The crypto market rally is happening as traders focus on the upcoming testimony of Kevin Warsh at the Senate Banking Committee, which will happen later today.
Warsh is seeking to replace Jerome Powell as the Federal Reserve Chair when his term ends in May.
This grilling will be important for the crypto industry for two main reasons. First, Warsh will likely be quizzed about the crypto industry and whether he supports it. Signs of support will lead to more gains in the crypto industry as he will be the first Fed Chair who is openly supportive to the industry.
Second, he will likely provide his thinking about where interest rates should be. Analysts believe that Warsh, unlike Jerome Powell, will be open to cutting interest rates this year as Donald Trump has asked for. Bitcoin and the broader crypto market does well when the Fed is cutting rates.
However, Warsh’s main challenge is that the rate is set by the Federal Open Market Committee (FOMC), where he has just one vote. To cut rates, he will need to convince the other officials, who may not be open to cut rates now that inflation remains much higher than the bank’s target of 2.0%.
Bitcoin price has formed an ascending triangle pattern
Bitcoin price chart | Source: TradingView
BTC and the broader crypto market is rising as Bitcoin has formed a highly bullish ascending triangle pattern. This pattern is made up of a horizontal line, which, in this case, is at $76,200, and an ascending trendline, which connects the lowest levels since February.
Bitcoin price has also flipped the Supertrend indicator from red to green, which is a highly bullish sign in technical analysis. Also, top oscillators like the Relative Strength Index (RSI) and the MACD have continued rising.
As such, the coin may surge to the next key resistance level at $93,500, the 50% Fibonacci retracement level at. Such a move will lead to more gains in the crypto market.