Leading cryptocurrencies rallied on Wednesday on news that Bitcoin would be granted special status in the national strategic cryptocurrency reserve.

What Happened: The apex cryptocurrency surpassed $90,000, recouping gains lost due to the ongoing tariff announcements by President Donald Trump.

The momentum trickled to the rest of the market as Ethereum sailed past $2,500, hitting an intraday high of $2,272.80.

The rally liquidated short positions worth $145 million from the cryptocurrency market in the last 24 hours.

Bitcoin's Open Interest popped 5.34%. A surge in spot price, coinciding with a jump in OI, indicated an influx of fresh money into the market.

More than 55% of traders on Binance were positioned long as of this writing, according to the Long/Short Ratio, implying a bullish sentiment.

In contrast, the Crypto Fear and Greed Index remained in the "Extreme Fear" zone.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $2.96 trillion, following an increase of 3.30% in the last 24 hours.

Stocks recovered on Wednesday following two consecutive days of losses. The Dow Jones Industrial Average jumped 485.60 points, or 1.14%, to close at 43,006.59. The S&P 500 gained 1.12%, ending at 5,842.63, while the tech-focused Nasdaq Composite added 1.46% to close the session at 18,552.73.

The recovery came after the Trump administration paused tariffs on automobile manufacturers' imports by one month, sending stocks of big automakers higher.

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Analyst Notes: Widely followed cryptocurrency analyst, Ali Martinez, stated that if Bitcoin reclaims $97,000, there is a strong chance of it moving toward $150,000, according to the Pi Cycle Top indicator.

The Pi Cycle Top Indicator is a technical indicator used to identify potential tops in Bitcoin’s price cycles.

Popular on-chain analytics firm Santiment noted a sharp drop in Ethereum sentiment owing to its underperformance relative to other large-cap cryptocurrencies. 

"For those patiently holding their ETH, the bearishness being projected across social media is a good sign of a potential turnaround once crypto markets stabilize," the analytics firm predicted.

Photo by CMP_NZ on Shutterstock

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