Why Is The Crypto Market Rallying Today?
Highlights
- Cryptocurrency prices have surged over the last day as the global market capitalization approaches $3.7 trillion.
- Bitcoin is trading at the $114,000 mark while Ethereum is trading at $3,500.
- The prospects of fresh institutional capital pouring into the markets in the coming days is fueling the Sunday pump.
After a torrid start to August, the crypto market has made a valiant attempt to recover steep losses. The resurgence sees Bitcoin inch toward the $114,500 mark while several altcoins are approaching double-digit percentage gains in the last 24 hours.
Crypto Market Racks Impressive Rebound
According to TradingView data, cryptocurrency prices have soared by nearly 3% over the last day, erasing previous losses. At press time, the global cryptocurrency market capitalization is pegged at $3.6 trillion, adding an impressive $85 billion.
The sudden surge in crypto market prices has the trappings of a classic Sunday pump, characterized by low trading volumes. Currently, daily trading volumes are at $131.36 billion, representing a 12% decline over 24 hours.
Bitcoin has picked itself from an intraday low of $111,943 to reach $114,453, gaining nearly 3% in a single day. Amid the price surge, Strategy founder Michael Saylor disclosed that “Winter is not coming back,” hinting at a longer price rally for the premier cryptocurrency.
Winter is not coming back. pic.twitter.com/KMs2L4tU5o
— Michael Saylor (@saylor) August 3, 2025
Ethereum, the second largest cryptocurrency, raked in nearly 3% to top $3,500. Meanwhile, other assets in the crypto market have latched onto the price spurt of the two largest cryptocurrencies to post impressive figures.
XRP spiked by 4% while Dogecoin and ADA pulled in gains of 4.18% and 5.11% respectively. HBAR and XLM have surged by over 10% in the last 24 hours while Pi racked up a respectable 4% in the same window.
The Sunday pump follows a broad crypto market crash at the start of August that sent leading cryptocurrencies tumbling to two-week lows. The crash also triggered massive outflows from Bitcoin and Ethereum ETFs, with both recording nearly 1 billion in losses.
Why Are Prices Rising?
Several factors are triggering a crypto market price resurgence over the weekend. At the top of the pile, institutional players buying the dip have triggered fresh demand for Bitcoin and Ethereum. Yesterday, Adam Back flagged a Bitfinex whale purchasing 300 BTC per day using a Time Weighted Average Price (TWAP) strategy.
Furthermore, fresh regulatory clarity is stoking optimism for a longer crypto market rally. At the end of last week, the US SEC launched Project Crypto to explore the tokenization of the US markets, with the Commission announcing a raft of roundtables with industry players.
On the macroeconomic side of things, simmering trade tensions from Trump tariffs have led to an influx of capital as investors view Bitcoin as a hedge against instability. In addition, the odds of a Fed rate cut in September have risen to 80%, amplifying bullish narratives in the crypto markets.
- Grayscale’s Crypto Index Fund Sees ‘Solid Start’ as SOL, XRP Institutional Demand Climbs
- Senate Democrats Urge Republicans for ‘True Collaboration’ to Quickly Pass CLARITY Act
- Crypto Market Correction Intensifies As S&P 500, DXY Enter Dangerous Territory
- BitGo To Follow Gemini’s Footsteps With US IPO After 4x Revenue Surge
- Michael Saylor Predicts Bitcoin Will Outperform S&P 500 Forever
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
