Cryptocurrency market surge today: Explanation behind the rise
In early July 2025, the cryptocurrency market is experiencing a significant surge, with the daily trading volume reaching an impressive 133 billion dollars, marking a 30% increase. This bullish trend is driven by a confluence of several key factors, creating a "perfect storm" that has propelled Bitcoin towards new price records and lifted the broader crypto market.
**Geopolitical Tensions and Post-Crisis Rallies**
Historically, Bitcoin has rallied following geopolitical scares. The recent conflict involving the US, Israel, and Iran triggered a brief dip in Bitcoin's price, which quickly reversed, illustrating Bitcoin’s resilience and its role as a digital asset that often gains appeal in times of global uncertainty. Following such events, Bitcoin has on average rallied 31% in the subsequent 50 days, fueling expectations of a price spike to around $136,000 soon.
**Institutional Investment and Adoption**
A major driver is the surge in institutional demand, outstripping the supply from miners. Large entities, including asset managers like BlackRock, have increased their exposure, bringing liquidity, stability, and more credibility to the market. This institutional backing provides a new foundation for sustained price moves beyond retail speculation.
**Favorable Macro and Monetary Conditions**
Global monetary expansion, particularly a notable increase in the Eurozone’s money supply (M2) by 2.7% year-over-year, is injecting liquidity into financial markets. This abundance of liquidity supports risk assets, including cryptocurrencies. Similar trends are observed in the US and other major economies, where central banks’ monetary policies have created a favorable environment for asset price appreciation. Bitcoin’s market cycles have closely correlated with such monetary expansions historically.
**Anticipated Central Bank Rate Cuts**
There is growing market anticipation of federal reserve and other central bank rate cuts later this year. Lower interest rates generally encourage investment into higher-risk assets such as stocks and cryptocurrencies. The easing inflation outlook, supported by falling oil prices, further strengthens this case, creating optimism for a bullish crypto market.
**Supply Dynamics Post Bitcoin Halving**
The April 2024 Bitcoin halving event cut the supply of newly minted Bitcoins by 50%, creating scarcity. This event has exacerbated upward price pressure given the strong demand, contributing directly to the recent bull market momentum.
**Regulatory Clarity**
More supportive and clear regulatory frameworks from governments, particularly in the US, have reduced uncertainty and fostered institutional confidence. This environment enhances mainstream adoption and investment in cryptocurrencies.
**Imminent Adoption of the "Big Beautiful Bill" and the GENIUS Act**
The imminent adoption of the "Big Beautiful Bill" by the U.S. House of Representatives is causing optimism in the crypto market. The bill, already approved by the Senate, is expected to boost U.S. public debt, potentially pushing investors towards Bitcoin as a safe-haven asset. Additionally, the upcoming GENIUS Act in the U.S. is expected to encourage new investors to enter the crypto market.
**Bitcoin ETFs Attracting Capital from American Investors**
Bitcoin and Ethereum ETFs are attracting capital from American investors, further fueling the bull run.
**Altcoins Showing Significant Gains**
Many altcoins, including Fartcoin (FARTCOIN), Dogwifhat (WIF), and Celestia (TIA), have also shown significant gains, indicating a broader market rally.
**Rate Cut Predictions**
Morgan Stanley predicts seven rate cuts by the end of the year, while Goldman Sachs analysts expect the U.S. Federal Reserve to make three rate cuts by the end of the year.
Despite short-term dips, such as Bitcoin dipping back below the 109,000-dollar mark due to traders opening shorts and others taking profits, the combination of these positive elements suggests a continuation of the bullish trend in the crypto market in the coming months.
The crypto academy is seeing an influx of students interested in investing in cryptocurrencies, driven by the current bullish trend in the market, fueled by a confluence of factors such as geopolitical tensions, institutional investment, favorable macro and monetary conditions, and the anticipation of central bank rate cuts. Technology plays a crucial role in this scenario, as new Bitcoin ETFs and the growing popularity of altcoins like Fartcoin (FARTCOIN), Dogwifhat (WIF), and Celestia (TIA) make it easier for investors to participate in the market.
