BTC, ETH Drive Crypto Market Rally on U.S Policy Speculation
The crypto market climbed by 2.27% over the last 24 hours to $2.24 trillion, driven by bullish speculation on U.S. policy changes, and showed a 95% correlation with the S&P 500 movement.
The uptick is a sentiment-driven bounce fueled by policy hopes and a squeeze on bearish positions, but it lacks a fundamental anchor.
Bitcoin (BTC) inched higher by 3.2% to $65k, while significantly oversold Ethereum (ETH) gained 4% to trade around $1.9k at the time of reporting.
A tweet from DeFiTracer claiming “President Trump Just Confirmed 0% Tax on Crypto” went viral late on 24 February, acting as a potent catalyst.
While unverified, the rumour tapped into existing anticipation for the upcoming White House Crypto Summit and the 1 March deadline for the Clarity Act.
The market reacted to the prospect of massive regulatory tailwinds and capital inflows, demonstrating how sentiment can drive short-term price action even before official news.
Crypto analysts urge investors to watch for concrete announcements from the White House Summit on 28 February regarding the Market Structure Bill or the Strategic Crypto Reserve.
Trading data showed that the bounce occurred from a deeply oversold sentiment base. The Fear & Greed Index hit a yearly low of 5 just yesterday, and the market’s RSI(14) was at 44.6.
Simultaneously, capital rotated into riskier assets, with the Layer 1 sector (+2.95%) and tokens like POWER (+41.59%) leading the way.
The immediate trend is contingent on the 28 February White House Summit. A positive outcome could propel the market toward the $2.49 trillion resistance, according to analysts.
However, failure to break and hold above the $2.35 trillion level may lead to a retest of recent lows near $2.17 trillion, according to technical signals. MOFI to Pay Final Dividend to Shareholders
