Why Crypto Market Is Going Up Today

Bitcoin and Ethereum reached multi-year highs on May 16, trading at $104,000 and $2,590 respectively. A variety of influences have contributed to the market’s rise, such as the continued momentum of key cryptocurrencies, increasing adoption from institutional players, improving macroeconomic trends, the growing popularity of real-world asset tokenization, and the rising trust of retail investors.

Strong Bitcoin and Ethereum Price Action

Bitcoin’s performance above $104,000 is being driven in part by renewed hopes of a lower interest rate in the U.S. and increased transactions by institutional investors. Ethereum Layer 2 (Eth2) achieved major milestones and recorded serious gains due to Pectra’s successful deployment.

On May 16, the price of Bitcoin oscillated between $103,641 and $104,091 as it ranked above other currencies and traded $31.98 billion worth of coins over the previous day. It’s maintained prices above $100,000 for the last nine days, trading between $101,820 and $104,457 on Bitstamp.

Bitcoin’s upward momentum since the drop to $79,000 has been steady, yet decreasing volume calls for a cautious approach as resistance is approached. Tight candlesticks indicate market indecision. An increase past $105,000 with substantial volume could indicate the resumption of the upward trend while a fall below $100,000 could lead to a downward correction.

On the 4-hour chart, the price is stuck between $105,000 and $100,000. Market participants seem keen to sell on declines. A bullish outlook requires price closing above the $105,000 level. Price is moving sideways between $103,000 and $104,000 after a failed rally to $104,457. Decreasing volume raises the likelihood of heightened volatility. Prices climbing above $104,500 demonstrate the possibility of an intraday breakout. A decline below $101,000 could lead to automatic take-profit orders.

RSI, Stochastic, and CCI indices at these values indicate the market is in a state of equilibrium. Both ADX and MACD suggest positive momentum while the momentum indicator indicates that the strength is weakening. Diverging signals highlight market uncertainty.

All the major moving averages indicate the trend is bullish, with the price continuing to move upwards. Nonetheless, a carefully studied range-bound period means that traders should be cautious before committing large funds.Expert forecasters predict that Bitcoin can cross $100,000 this year if institutional adoption maintains its rate. A variety of forces, including an increasing adoption of AI, the launch of spot ETH ETFs, and the potential gains offered by the Pectra upgrade, could propel Ethereum to a new peak of $5,000 by 2025.

Ethereum Poised for Major Breakout as Analysts Predict Parabolic Surge

A growing number of crypto analysts believe that Ethereum’s drawn-out consolidation is priming the market for a major breakout. Mister Crypto remarked on X that Ethereum’s extended consolidation could signal an approaching burst of price appreciation. Mister Crypto stated that an explosive breakout likely awaits Ethereum in the short term. He believes Ethereum will surpass its previous ATH once the price explodes higher.

Skyrexio also interpreted Ethereum’s upcoming movement as the start of an “insane” upward trend. Skyrexio noted that Bitcoin’s dominance is almost set to drop, which may spark a new surge in Ethereum. He noted that the bounce from support has already commenced despite Ethereum facing barriers of around $2,600.

Despite a potential price pullback, Skyrexio firmly believes that Ethereum is heading into its bullish final wave. According to the weekly chart, wave 3 now defines the ongoing Ethereum rally. 

Skyrexio projected the wave 3 targets at the 1.61 Fibonacci extension level, or roughly $6,500. He also urged traders to remain cautious of a secondary scenario where Bitcoin’s dominance could rise to 67%, causing Ethereum to retest lower support levels. However, he noted that whale accumulation is increasing, signaling strong confidence among large investors.

Supporting this observation, crypto analyst Ali Martinez reported that nearly one million ETH have been withdrawn from exchanges over the past month, indicating growing investor confidence and reduced selling pressure. In a separate analysis, Martinez reaffirmed his bullish target range of $8,000 to $10,000 for this market cycle. He compared the current sentiment to Ethereum’s 2017 rally, citing similar market dynamics that could support such a price surge.

Further adding to the bullish outlook, analyst Titan of Crypto predicted that Ethereum could soon experience a parabolic price move, potentially reaching as high as $4,000. Ethereum has risen by around 2.45% in the past 24 hours and is trading at $2,587.

Institutional Adoption

Institutional investors have been increasingly getting involved in the cryptocurrency market. Many institutional investors changed their investments in Bitcoin spot exchange-traded funds (ETFs) during the first quarter of 2025, with some choosing to increase their allocation. The Mubadala investment firm from Abu Dhabi purchased over $400 million worth of stake in the iShares Bitcoin ETF through the first quarter.

FalconX also recently joined forces with Standard Chartered to provide better access for institutional investors to the cryptocurrency market through traditional financial infrastructure. 

Macroeconomic Conditions

Macroeconomic factors have played a role in driving the recent bull run in the crypto market. The likelihood of a Fed rate cut increases viable investment opportunities in Bitcoin as a high-risk value for many investors. Furthermore, lower U.S. dollar strength as measured by the DXY has created an additional liquidity boost to support a rising Bitcoin price. 

Additionally, U.S. lawmakers are working on legislation to supervise dollar-pegged stablecoins, aiming to strengthen the power and global dominance of the U.S. dollar. Stablecoins are currently storing $120 billion in U.S. Treasurys, operating in a way similar to money-market funds and boosting dollar-denominated assets with non-USD funds. 

Surging Popularity of Real-World Asset Tokenization

Real-world assets are increasingly getting tokenized using blockchain technology while the process is reshaping how securities are created, exchanged, transferred, settled and stored. The increased use of tokens in representing assets has led to the growth of the tokenized asset market, which is expected to exceed $18.9 trillion by 2033. 

Projects like Chainlink, MakerDAO, and Ondo Finance are leading the way in RWA tokenization, providing secure oracle services and facilitating the integration of real-world assets into decentralized finance (DeFi). 

Growing Retail Investor Confidence

Retail investors are catalyzing the current revival in the crypto market. The increasing trend indicates a rekindling of retail interest in cryptocurrencies, as optimism about Bitcoin’s future strengthens positive market sentiment and boosts purchases. Networks such as Twitter and decentralized finance platforms have helped ensure that retail traders stay informed and can move the market before major institutions execute their trades. 

All of these factors combined have contributed to the recent expansion of the cryptocurrency market. Emerging trends are expected to determine the course of digital assets in the years to come.

Frequently Asked Questions

Why is crypto rising now?

The current rise in cryptocurrency prices is due to a combination of factors, including strong price actions of major cryptocurrencies like Bitcoin and Ethereum, increased institutional adoption, favorable macroeconomic conditions, the growing trend of real-world asset tokenization, and heightened confidence among retail investors.

What causes crypto to go up?

Cryptocurrency prices increase when there is higher demand than supply. Factors contributing to increased demand include positive market sentiment, institutional investments, favorable economic indicators, technological advancements, and regulatory clarity.

Why is the crypto market up?

The crypto market is up due to renewed optimism surrounding potential U.S. interest rate cuts, increased institutional buying activity, successful technological upgrades in major cryptocurrencies, and the growing adoption of blockchain technology in traditional financial markets.

Why is Bitcoin surging?

Bitcoin is surging past the $104,000 mark, driven by renewed optimism surrounding potential U.S. interest rate cuts and increased buying activity from institutional investors.