Bitcoin’s rally to $94,000 pushes total crypto market cap above $3 trillion

Bitcoin, ETH and the broader cryptocurrency market rallied sharply on Tuesday into Wednesday after the Trump administration softened its stance on Federal Reserve leadership and hinted at renewed trade talks with China.

U.S. Treasury Secretary Scott Bessent signaled de-escalation with Beijing while President Donald Trump downplayed speculation about removing Fed Chair Jerome Powell and teased potential tariff reductions on Chinese imports.

$3 trillion crypto market cap

Following these updates, the total crypto market capitalization surged past $3 trillion, reaching a six-week high, according to The Block’s data page. Bitcoin jumped above $94,000, ETH topped $1,800 and Solana hit $150 for the first time in weeks. The GMCI 30 index rose 7%, according to data from The Block.

“It feels like we’ve maxed out on tariff-related fear,” Aurelie Barthere, principal research analyst at Nansen, told The Block. “Markets were just waiting for the slightest signal that we’re back in the game.”

Bitcoin and ether outpaced the S&P 500 and Nasdaq with 12% and 14% weekly gains, respectively. The bullish sentiment is also reflected in crypto open interest, which increased by 10% and crossed $124 billion in 24 hours per Coinglass. Additionally, aggregated open interest in BTC options approached March levels, and volume of bitcoin options surpassed February’s numbers, according to The Block’s data page.

Valentin Fournier, BRN Lead Research Analyst, noted that BTC and other tokens benefited from traders unwinding bets on lower prices. “The surge was amplified by a $554M short squeeze, with Bitcoin accounting for ~50% and Ethereum ~25% of total liquidations. This added fuel, propelling bitcoin above the critical $90K resistance, now trading above $93.5K,” Fournier said in a note.

Institutional demand

Institutional inflows reflected the market’s bullish momentum. Spot ETF tracking bitcoin attracted $936 million, marking the seventh-largest single-day inflow in BTC ETF history, according to data from The Block and Bloomberg.

“This could be the start of a new accumulation cycle as institutions rebuild their digital asset allocations after weeks of outflows, even amid positive price action,” said Fournier. “De-escalation in tariff tensions also supported a broader risk-on shift, pushing equity markets higher and reviving risk appetite across asset classes.”

Brandon Lutnick, Cantor Fitzgerald CEO and son of U.S. Commerce Secretary Howard Lutnick, plans to partner with giants like SoftBank, Tether and Bitfinex for a $3 billion bitcoin fund. The new initiative shows signs of Strategy’s (formerly MicroStrategy) playbook, but with a twist, per QCP Capital.

“The structure channels early echoes of Strategy, whose Bitcoin-heavy balance sheet once dominated headlines,” QCP analysts said. “Converting BTC holdings into equity, issuing shares priced at $10, effectively values bitcoin at $85,000 per coin. For many, this isn’t just another fund, it’s a prototype for institutionalizing crypto exposure at scale.”

Short-term reversal likely

Despite growing market excitement, analysts cautioned against excessive trading fervor. Fournier argued that BTC looked overbought from a technical standpoint and predicted a brief correction. Bitfinex analysts highlighted a similar scenario in a note, adding that a sustained ascent hinges on multiple factors. If BTC can hold the $90,000 level with strong spot volume and reasonable funding rates, prices may rise.

“However, altcoin lag and still-elevated macro uncertainty could limit broad-based upside in the short term,” Bitfinex analysts commented. “If funding flips positive and OI continues to rise, caution is warranted for a near-term pullback.”

QCP Capital emphasized a macro overhang from tariff discussions and U.S. inflation concerns, a sentiment shared by Nansen’s Barthere.

“Whether the rally is sustainable depends on if we can break through previous resistance levels, at least in isolation. It could have legs, as markets now seem to believe there’s a ‘Trump put’ under equities, the USD, and U.S. Treasuries. Still, we could see a volatile regime as negotiations with China continue,” Barthere said.