The crypto market is recovering today, and this is reflected in the prices. Bitcoin is up 1.60%, while the XRP price is up an impressive 6.35%. Ethereum, Solana and Cardano are also developing positively. But what is behind it? Why are we seeing green numbers today?

Green numbers for the crypto market

First of all, we should not celebrate too soon, because despite the increase of 1.60%, Bitcoin is still at $97,000. This means that the largest cryptocurrency is still far from its all-time high of $109,000. So there can be no talk of a real continuation of the bull market yet.

It is difficult to pinpoint an exact reason for today’s price gains, but it is safe to say that the fundamentals for Bitcoin’s bull market remain intact. The US economy remains stable, helping to support market momentum.

At the same time, we are seeing continued strong performance in gold and the world’s largest stock indices in 2025.

Things are going particularly well for the Hang Seng Index in Hong Kong, in which many large Chinese tech companies are listed. But the S&P 500 and the Nasdaq 100 have also delivered solid results this year.

Gold is performing particularly well and is trading close to an all-time high of $2,939. Overall, the markets are bullish, which should theoretically also have a positive effect on Bitcoin.

Good news from the US Federal Reserve

In addition, there was positive news from the US central bank yesterday. It was announced that the Federal Reserve is considering an end to quantitative tightening (QT) – i.e. the reduction of its balance sheet.

For several years, the central bank has been engaging in QT to reduce inflation to the desired level of 2.0%. The balance sheet reduction means that the central bank no longer buys government bonds or even acts as a net seller.

This means that the US government has to borrow capital from the market, which can then no longer flow into Bitcoin or stocks. In other words, the central bank is withdrawing liquidity from the financial markets.

If this policy ends, it could give the financial markets a boost – and that is exactly what we are currently observing. This is not yet an official announcement, but merely considerations about ending the QT program in the near future.

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Margharet Tess

Editor, Developer at Cryptheory Labs

I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com

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