Crypto Market Surge: What’s Driving Today’s Unexpected Rally?

The crypto market surged on April 23, with total market capitalization climbing by approximately 3.3% to reach $2.93 trillion. Strong performances from the two leading digital assets powered the rally. Bitcoin jumped by 3.8%, while Ethereum surged ahead with an 8.5% gain.

Crypto Market Surges as Bitcoin Breaks Key Resistance, Altcoins Rally

The crypto market gained renewed momentum as Bitcoin broke through the $94,000 level—a price it hadn’t hit since early March 2025. This sharp move above a major psychological threshold boosted investor confidence and propelled the market upward.

Altcoins joined the uptrend, posting modest gains in the past 24 hours. Crypto analyst Rekt Capital observed that Bitcoin broke out of a persistent consolidation range that had limited its momentum for weeks. After multiple tests of support, buyers stepped in, lifted prices, and drove trading volume up by 34%. This surge in activity confirmed the strength of the breakout.

Bullish signals spread across the broader market. The total altcoin market cap (TOTAL3) broke out of a falling wedge pattern—often seen as a signal of trend reversal. The price crossed the upper trendline after weeks of tight consolidation, suggesting the downtrend has likely ended and an upward trend has begun.

2025’s Biggest Short Squeeze Sparks Crypto Rally

A massive wave of short liquidations fueled today’s market rally. According to CoinGlass, traders liquidated more than $618 million worth of crypto positions in the past 24 hours. Roughly $545 million, or 88% of that total, came from short sellers who were forced to exit their trades.

This event marks 2025’s most significant short squeeze so far, triggering a bullish chain reaction. When short traders get liquidated, their positions close via aggressive buying, which pushes prices even higher and causes additional liquidations.

Liquidation charts show sharp spikes in closed shorts that align with sudden price increases. Today’s event mirrors the November 6 squeeze, which wiped out over $426 million in short positions and lifted the crypto market by 16%.

Bitcoin led the current rally, as its rapid move above $94,000 surprised bearish traders. This breakout came just one day after Bitcoin hit a two-week high of $91,000.

The strong market rebound also boosted investor sentiment. According to CoinMarketCap, the Crypto Fear and Greed Index climbed from 38 (Fear) yesterday to 52 (Neutral) today, signaling growing optimism in the market.