Bitcoin broke above $93,000 on Tuesday for the first time since early March, leading a strong rally across the crypto and stock markets. Altcoins followed suit, with Ethereum up 11%, XRP gaining 5%, and Solana rising 6%, as renewed optimism about a possible US-China trade deal lifted investor sentiment.
What’s Fueling the Rally?
Markets surged after Treasury Secretary Scott Bessent said during a closed-door meeting that the trade conflict between the US and China is “unsustainable.” He added that he expects a resolution to be reached soon. His comments sparked optimism across both crypto and equities.
President Donald Trump added fuel to the fire by telling reporters he plans to work on a deal with China to lower tariffs. “The 145% tariff is very high and won’t stand,” Trump said. “It won’t be anywhere near that high — it will come down substantially, but it won’t be zero.”
This sense of de-escalation in trade tensions sent waves through the markets, with the S&P 500, Nasdaq, and Dow Jones all posting gains of over 2.5%.
Liquidations Surge as Short Traders Get Burned
With the sharp rise in crypto prices, short traders faced heavy losses. According to Coinglass, over $581 million in futures positions were liquidated in just 24 hours, with more than $504 million of that from short positions alone.
Long-Term Holders Back in Action
Data from CryptoQuant reveals that long-term Bitcoin holders — those who’ve held their coins for more than 155 days — are back in accumulation mode. This marks the first time since the last local peak that long-term investors are net buyers, signaling growing confidence in the market.
On the other hand, short-term holders (less than 155 days) continue to sell, perhaps locking in profits or reacting to recent volatility.
“The Net Position Change for Long-Term Holders has turned positive, while Short-Term Holders are still deep in negative territory,” noted a CryptoQuant analyst.
Memecoins, AI Tokens, and RWAs Join the Party
The rally wasn’t limited to major assets. Memecoins jumped over 15%, while sectors like AI and Real-World Asset (RWA) tokens also posted solid gains.
Bottom Line
Bitcoin’s surge past $93,000, along with gains across the crypto and stock markets, reflects growing optimism around a possible thaw in US-China relations. While it’s unclear how long the rally will last, increased activity from long-term holders and a broader risk-on sentiment suggest that investors are feeling bullish — for now.
As always, market moves come with risk, and anyone considering investing should do thorough research and understand the potential downsides.
Disclaimer: This content is for informational purposes only. Always conduct your own research before investing.
