The cryptocurrency market surged higher on Tuesday, adding to Monday’s partial retracement and pushing total crypto market capitalization above the $3.5 trillion level once again. This 2% daily increase was spearheaded by top-performing altcoins—Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE)—while Bitcoin (BTC) reclaimed bullish momentum following a brief dip.
The article from the brokers at TelaraX delves deeply into this complex topic.
Bitcoin Market Update: $104K Level Reclaimed
Bitcoin, the largest cryptocurrency by market capitalization, rose 2% on Tuesday to $104,400, after experiencing a pullback to $101,368 during Monday’s profit-taking. On Binance, the BTC/USD pair briefly traded as high as $104,800 before encountering resistance near its recent highs.
Crucially, 24-hour trading volume for Bitcoin remained robust, reaching $33 billion, a figure close to its weekly peak. This elevated activity underscores the market’s confidence in Bitcoin’s upward momentum and positions it to test the $105,000 psychological barrier in the sessions ahead.
With BTC rebounding sharply after Monday’s correction, technicals align with growing macro optimism to support the thesis of Bitcoin making another run at its all-time high (ATH).
US CPI Sparks Market-Wide Rally
A key driver behind the renewed optimism was the release of US Consumer Price Index (CPI) data. According to TradingEconomics, the CPI rose to 320.80 points in April, up from 319.80 in March 2025. More significantly, the year-on-year inflation rate fell to 2.3%, marking the lowest reading since February 2021, and beating consensus expectations of 2.4%.
This soft inflation print has fueled speculation that the Federal Reserve may soon implement interest rate cuts, boosting risk-on assets such as cryptocurrencies. The correlation between monetary easing prospects and crypto rallies has historically been strong, with Bitcoin and altcoins often benefiting from looser financial conditions.
Altcoins Surge: ETH, SOL, and DOGE Dominate Gains
Altcoins were quick to capitalize on the CPI-induced momentum, with top-tier assets showing notable double-digit intraday gains in some cases. Overall, the global crypto market cap rose 2.2% in the last 24 hours, climbing to $3.53 trillion.
Ethereum (ETH)
ETH led the charge, jumping 9.0% to settle at $2,687.03. The rally was bolstered by a combination of ecosystem developments, including rising staking participation and institutional flows into Ethereum-based Layer 2 solutions. Optimism about the long-term value of Ethereum’s modular architecture and its DeFi dominance continues to drive renewed investor interest.
Solana (SOL)
Solana followed with an impressive 5.9% gain, pushing its price to $182.26. The rally was catalyzed by a revenue-sharing update on Pump.fun, a Solana-native platform, which sparked increased activity among content creators and dApp developers. The renewed attention has triggered bullish momentum, reviving enthusiasm around Solana’s low-cost, high-speed transaction infrastructure.
Dogecoin (DOGE)
Dogecoin also outperformed with a 5.7% increase, closing in on $0.239. The spike in DOGE’s price came as retail traders began to rotate funds back into meme coins, drawn by technical breakouts and improving market sentiment. Historically, retail inflows into meme tokens like DOGE and SHIB often precede wider market rallies, acting as a sentiment indicator.
Macro Tailwinds and Technical Breakouts Point to Bull Cycle
The convergence of macro tailwinds, including the favorable CPI data, and technical breakouts across leading assets suggests that the market may be entering a new bull cycle. A sustained break above $105,000 for Bitcoin, coupled with ongoing strength in Ethereum, Solana, and Dogecoin, could pave the way for capital rotation into mid-cap altcoins and low-cap memecoins.
In prior cycles, breakouts in the top 10 crypto assets have served as a precursor to broader rallies across the altcoin landscape. With total market capitalization again above $3.5 trillion, the risk-on narrative appears to be strengthening.
Outlook: Eyes on Bitcoin’s All-Time High and Fed Policy Clues
While Bitcoin’s all-time high of approximately $105,500 remains just out of reach, the momentum shift seen in early May 2025 provides a compelling backdrop for another attempt. A successful breach of the ATH could send psychological shockwaves through the market, further invigorating retail and institutional participation.
Market participants will now turn their attention to upcoming Fed statements, looking for confirmation of a dovish pivot that could bolster liquidity in risk markets. Should dovish commentary align with continued strength in macro indicators, cryptocurrencies could see sustained upside throughout Q2 2025.
Conclusion: Strength Returns, But Confirmation is Key
The Tuesday rally has reignited bullish sentiment across the crypto market, with Bitcoin reclaiming the $104,000 level and altcoins outperforming in response to cooling inflation. While the market now teeters on the edge of a breakout into new highs, traders should remain cautious and watch for volume confirmation, macro data consistency, and technical validation before declaring the next leg of the crypto bull cycle firmly underway.
If key levels continue to hold and macro conditions remain supportive, BTC, ETH, SOL, and DOGE could lead the way in a sustained rally that pulls the entire market ecosystem along with them.
