Crypto rally: Here’s why Bitcoin and altcoins are going up today

A crypto rally is underway, with Bitcoin and most altcoins experiencing price increases this week. Bitcoin jumped to a record high of slightly below $112,000, while the market capitalization has soared to $3.47 trillion. This article explains why Bitcoin and altcoins are going up.

Rising fear and greed index

The primary reason for the crypto rally is the rising risk-on sentiment in financial markets. The CNN Money Fear and Greed Index has jumped to the extreme greed zone of 75. 

Its top sub-indices, like the stock price strength and breadth, put and call options, and junk bond demand have all moved to the extreme greed zone this week.

This trend also explains why the stock market surged, with NVIDIA reaching a $4 trillion market capitalization for the first time. The Dow Jones, S&P 500, and Nasdaq 100 indices rose by over 0.50% on Wednesday.

Bitcoin bullish patterns

The other main reason why the crypto rally is happening is that Bitcoin has formed two unique patterns, pointing to more gains, potentially to nearly $150,000. Historically, a Bitcoin surge leads to more upside among other altcoins. 

The chart below shows that Bitcoin formed a cup-and-handle pattern, which consists of a rounded bottom and a period of consolidation. It has been forming the handle section in the past month. This handle is part of the bullish flag pattern.

Therefore, by measuring the cup’s depth and the height of the flag, one can estimate that the Bitcoin price will jump to nearly $150,000 later this year.

Bitcoin price chart | Source: TradingView

Crypto rally is happening because of the falling US dollar index

The other tailwind driving the crypto rally is the falling US dollar index (DXY), which has moved from the year-to-date high of $110,000 to the current $97. 

The dollar has plunged against most currencies as investors question its role as a safe-haven asset after Trump’s unilateral tariffs. It has also dropped as traders anticipate the upcoming Federal Reserve interest rate cut. 

It also fell after Moody’s downgraded the US credit rating, warning of the ongoing uncontrolled spending. A good example of this spending is the recently passed Big, Beautiful Bill, which adds over $4 trillion in deficits in the next few years.

The falling US dollar is a catalyst for assets dominated by the currency like stocks, crypto, and commodities. 

Upcoming Crypto Week

The other reason why Bitcoin and altcoins are going up is the upcoming Crypto Week. Republicans in Congress hope to pass three crypto-related bills next week. 

The first bill is the GENIUS Act, which seeks to provide clarity in the stablecoin market. They will also consider the CLARITY Act, which separates the role of the SEC and the CFTC in crypto regulations.

Congress will also consider a bill that will ban central bank digital currencies (CBCs) in the United States. Politicians worry that these digital currencies will lead to government surveillance.

Bitcoin and altcoins are also rising as investors predict the end of the ongoing trade war. The theory is that Trump's recent escalation is intended to pressure these countries into reaching agreements.