The cryptocurrency market has witnessed an unprecedented surge, with Bitcoin prices surpassing $102,000, initially fueled by President Donald Trump’s announcement of a “major trade deal” with a “large and respected nation,” which turned into yesterday’s trade deal announcement.
The unexpected statement, made via the Truth Social platform, was more than just a political headline; it reignited global risk appetite, particularly after a period of caution amid uncertainty surrounding American trade policy.
Analysts said Trump’s remarks reflected “a clear intention by the President to steer market sentiment,” possibly laying the groundwork for future economic initiatives and further trade agreements. Markets reacted strongly, not merely to the content of the announcement but also to the source and the sensitive geopolitical context in which it was delivered.
Huge liquidation of short positions in 24 hours
Total cryptocurrency market capitalisation reached $3 trillion, reflecting a massive short squeeze as over 71.4% of leveraged short positions were liquidated within just 24 hours. This sharp move highlights the fragility of heavily indebted positions and also signals a potential structural shift in investor sentiment toward digital assets, with Bitcoin increasingly viewed as a haven during times of political and economic uncertainty.
According to CoinGlass data, over 106,000 trading positions were liquidated, with a total value exceeding $291 million, indicating a market explosion driven more by sentiment and emotion than pure technical factors. “These figures reveal an immature market phase, where news headlines trigger herd-driven speculation, paving the way for heightened volatility in the near term,” said Rania Gule, a cryptocurrency analyst with XS.com.
Bitcoin’s breakout above the psychologically significant $97,000 level, which had long served as strong resistance, marked a potential new leg in the rally. With positive sentiment persisting, especially in light of the U.S. Federal Reserve’s recent decision to hold interest rates steady at 4.5% for the third consecutive meeting, Bitcoin has smashed through the $100,000 threshold.
“With signals pointing to a possible rate cut in Q2, we could see increasing capital flows into Bitcoin as a non-interest-bearing alternative asset,” said Gule.
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More speculative cash heading into Solana
Meanwhile, altcoins like SUI, Solana, and Alpaca have emerged as new speculative hotspots, driven by the growing interest in yield protocols and staking. SUI alone saw over $1.7 billion in trading volume within 24 hours, surpassing well-known assets like DOGE and BNB, suggesting that investors are actively chasing higher-risk, higher-reward opportunities.
This trend carries both great potential and substantial risk: while some may benefit from these sharp upswings, the market could also face severe corrections should the momentum fade.
In this context, Ethereum’s latest “Pectra” upgrade marks a significant technical development. It enhances the network’s scalability and efficiency, preparing it for the anticipated growth of Web 3.0 applications. This upgrade is being hailed as a strategic move that reinforces Ethereum’s position as a comprehensive platform, not merely a speculative digital asset.
On the regulatory front, Crypto.com’s expansion into Washington reflects a strategic shift among major players toward constructive engagement with American regulators, a critical step in accelerating institutional adoption of cryptocurrencies. This move signifies an effort to build trust with authorities amid rising discussions about the need for regulatory clarity, market stability, and investor protection.
Finally, with the total market capitalisation stabilising around $3.1 trillion and minor pullbacks in some cryptocurrencies, any declines are now being regarded as healthy profit-taking corrections ahead of the next bullish leg, particularly with Bitcoin’s momentum still intact.
If investors continue to interpret the interest rate outlook and global trade relations optimistically, the crypto sector could break through historic levels again before the end of the first half of the year.
