Why is Crypto Market Up Today: Altseason Starts or Crash Calls?

Crypto Markets Surge Amid Trump-Powell Tensions and Major Bitcoin Purchase by Metaplanet

The cryptocurrency market has shown notable strength over the past 24 hours, with a sharp rise in overall market capitalization and trading volume. On April 22, 2025, the global cryptocurrency market cap reached $2.75 trillion, marking an increase of 3.06%. This bullish momentum reflects rising investor interest in digital assets, particularly Bitcoin, which continues to assert dominance as macroeconomic and political uncertainties intensify.

According to CoinMarketCap data, market volumes have surged by more than 49%, hitting $67.65 billion. Notably, stablecoin trading constitutes over 92% of this activity, highlighting a significant level of liquidity and risk-hedging in the ecosystem. Meanwhile, the DeFi sector, which has long been viewed as a barometer for innovation and risk appetite in the blockchain space, contributed approximately $5.48 billion—representing over 8% of total trading activity.

Bitcoin, the flagship cryptocurrency, continues to command dominance within the market. Its current price stands at $87,262, with a market capitalization of $1.73 trillion. Over the past 24 hours, Bitcoin trading volume has exceeded $27 billion, underscoring its role as the go-to asset in times of economic uncertainty.

Political Tensions Push Investors Toward Crypto

One of the primary drivers behind this latest market rally is escalating political friction in the United States. Former President Donald Trump has sharply criticized Federal Reserve Chair Jerome Powell, accusing him of being "too late and wrong" regarding interest rate decisions. Trump’s comments suggested Powell should be removed from his role, stating that his ouster "cannot come fast enough."

Powell, for his part, defended the independence of the Federal Reserve, reaffirming that a Fed Chair can only be dismissed “for cause”—a legal standard that excludes mere policy disagreements. His refusal to resign amidst rising political pressure has sent waves of concern throughout traditional financial sectors, already wary of policy instability during a contentious election year.

This political uncertainty has had a ripple effect, driving institutional and retail investors alike toward alternative financial instruments. Crypto assets, particularly Bitcoin, are once again being viewed as a hedge against inflation and macroeconomic instability—similar to the dynamics observed during previous crises.

Metaplanet’s Strategic Bitcoin Acquisition Adds Fuel

Adding to the market’s upward momentum is a bold move by Japanese investment firm Metaplanet. The company recently acquired 330 additional Bitcoins, valued at approximately $28.2 million. This purchase brings Metaplanet’s total holdings to 4,855 BTC, now worth nearly $500 million.

The firm’s average purchase price was around $85,605 per coin, indicating strong long-term confidence in the cryptocurrency’s valuation. Metaplanet’s strategy closely mirrors that of U.S.-based MicroStrategy, which has famously employed a dollar-cost averaging model to accumulate Bitcoin as a core asset on its balance sheet.

Both Metaplanet and MicroStrategy are constituents of the Bitwise OWNB Index—a tracker of publicly traded firms with significant Bitcoin exposure. Market analysts have pointed out that moves like Metaplanet’s not only reinforce Bitcoin’s institutional legitimacy but also trigger psychological bullish signals across retail trading communities.

Following the announcement, Bitcoin’s price rose more than 3% within a single trading day, with similar positive sentiment spilling over into the altcoin market.

Fear and Greed Index Indicates Gradual Sentiment Recovery

Investor sentiment has also shown signs of recovery. The widely watched Fear and Greed Index has climbed from 31 last week to 39 today. Although still within the "fear" zone, this upward trend suggests a growing sense of cautious optimism.

Historically, such fear-based conditions have often presented strong entry points for long-term investors. The market's tendency to recover from these zones has led many crypto veterans to view periods of uncertainty as opportunities for strategic accumulation.

Altcoins Signal Possible Entry into New Altseason

With Bitcoin dominance edging up slightly to 63.08%—a 0.28% rise from the previous day—traders are now speculating whether the next phase of the bull cycle could favor altcoins.

Several major cryptocurrencies have posted strong gains:

• Ethereum (ETH) has risen by 3.21%, continuing its steady march toward renewed highs.

• XRP is up 3.53%, buoyed by developments in its ongoing regulatory clarity.

• Solana (SOL) gained 0.88%, maintaining its reputation as a fast and scalable platform.

• Dogecoin (DOGE) surged 4.81%, driven in part by increased social media attention and renewed retail interest.

According to CryptoJack, a well-known digital asset analyst, these signs may point to the beginning of a new “altseason”—a market phase where alternative cryptocurrencies outperform Bitcoin in percentage gains.

Source: X

This hypothesis is supported by technical indicators. Previous instances of a "bullish cross" in Bitcoin’s chart—in 2015, 2019, and 2023—have all preceded massive rallies. In 2017, such a cross saw BTC rise from $200 to nearly $20,000. In 2021, a similar pattern took the price from under $4,000 to $69,000. The formation of a comparable structure in 2024, now with Bitcoin firmly above $87,000, has once again raised expectations of a strong upward continuation.

Potential Headwinds Remain

Despite the bullish narrative, several challenges remain on the horizon. These include:

• Upcoming announcements on trade policy and tariffs from Donald Trump, which may further shake global financial confidence.

• Scheduled Federal Reserve meetings, which could signal changes in interest rates or monetary policy.

• Potential legislative or regulatory developments targeting cryptocurrency markets, especially in the U.S. and Europe.

Each of these could introduce short-term volatility or correction in digital asset valuations. Analysts caution investors to remain vigilant, stay diversified, and prioritize research before making major financial decisions.

Conclusion

The recent surge in cryptocurrency markets reflects a confluence of political uncertainty, institutional investment, and improving sentiment. With Bitcoin setting new benchmarks and altcoins gaining momentum, the crypto space appears poised for a potentially transformative period.

Nevertheless, the digital asset ecosystem remains inherently volatile. While long-term indicators and historical trends point toward continued growth, short-term risks cannot be ignored. For now, all eyes are on Bitcoin—and whether this rally signals the start of another record-breaking cycle or a temporary response to geopolitical and financial turmoil.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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