Crypto News: Why Is the Crypto Market Up Today? Short Squeeze, Trade War Optimism, and Technical Breakout Drive Rally

Total Market Cap Rises 6.7% as Bitcoin Hits $94K and Ethereum Surges 13%The crypto market is surging today, fueled by a combination of macroeconomic relief, massive short liquidations, and a bullish technical breakout in total market capitalization.As of April 23, the total crypto market cap has risen 6.7% to $2.94 trillion, led by a strong rally in Bitcoin (BTC) and Ethereum (ETH), which are up 6.4% and 13% respectively. Market analysts point to three key drivers behind the rally:1. Easing U.S.-China Trade War Tensions Boost Risk AppetiteA major catalyst behind today’s crypto market rally is renewed optimism over a de-escalation in the U.S.-China tariff standoff.On April 22, U.S. Treasury Secretary Scott Bessent told Bloomberg that the current tariff structure with China is “unsustainable,” signaling openness to a lowering of tariffs in the near future. Later that day, President Donald Trump echoed this view, stating that tariffs “will come down substantially” from the current 145% level.Trump also clarified that he does not plan to remove Federal Reserve Chair Jerome Powell, easing market fears about central bank instability.These developments have contributed to a broader risk-on sentiment, with investors piling into digital assets amid renewed confidence in global trade and macroeconomic stability.2. Short Squeeze Unwinds Over $540M in Bearish BetsThe rally has also been amplified by a massive short squeeze, according to data from CoinGlass.In the past 24 hours, $624 million in crypto positions have been liquidated — $545 million of which were shorts, marking the largest single-day short liquidation event of 2025.“Short squeeze!” CoinGlass noted, highlighting the scale of forced buying pressure that accelerated Bitcoin’s climb beyond $93,000.This liquidation event mirrors similar spikes in previous bull cycles, including the Nov. 6 surge, where $426 million in short positions were wiped out, leading to a $356 billion increase in market cap.3. Technical Breakout Confirms Bullish Trend ReversalFrom a charting perspective, the crypto market has broken out of a multimonth falling wedge, a bullish pattern suggesting trend reversal.The TOTAL chart — representing the combined market cap of all cryptocurrencies — broke above the 50-day simple moving average (SMA) and successfully retested the wedge resistance at $2.6 trillion, with price now targeting the next resistance range between $2.93T and $2.94T, marked by the 100-day and 200-day SMAs.The relative strength index (RSI) has also surged from 30 on April 7 to 65, reflecting growing bullish momentum and sustained buying interest.Technical Target: If the breakout holds, TOTAL could reach $3.12 trillion, a 7.5% upside from current levels.Will Bitcoin Hit $95K?With Bitcoin trading near $94,000 and traders eyeing $95K as the next psychological barrier, momentum remains strong. Combined with improving macro conditions and favorable technical indicators, the market appears poised for continued gains — though resistance at major moving averages may test bullish resolve, according to Cointelegraph.