#MarketRebound

The recent rebound in the cryptocurrency market, observed in April 2025, can be attributed to a confluence of macroeconomic shifts, regulatory developments, and renewed investor confidence. Here’s an overview of the key factors driving this resurgence:

1. Easing Global Trade Tensions and Supportive U.S. Monetary Policy

A notable softening in U.S.-China trade tensions, coupled with President Trump’s affirmation of support for Federal Reserve Chair Jerome Powell, has alleviated investor concerns. This geopolitical détente has fostered a more favorable environment for risk assets, including cryptocurrencies. In the past 24 hours, the overall crypto market capitalization surged by over 6%, reaching approximately $2.94 trillion, with Bitcoin and Ethereum experiencing significant price increases .

2. Renewed Inflows into Cryptocurrency ETFs

Investor sentiment has been buoyed by substantial inflows into cryptocurrency exchange-traded funds (ETFs). Notably, U.S.-based Bitcoin Spot ETFs have seen increased investment, and Ethereum Spot ETFs recorded $39 million in inflows on a single day, reversing previous outflows. Fidelity’s Ethereum Fund (FETH) led with $33 million in new investments, indicating growing institutional interest .

3. Technical Indicators Signaling Market Recovery

Analysts have identified that Bitcoin entered oversold territory, as indicated by the Relative Strength Index (RSI) dropping below 30. Historically, such conditions have preceded significant price rebounds. For instance, following a similar RSI dip in August 2024, Bitcoin experienced a 33% price surge .