Why Is Crypto Up Today? – June 4, 2025

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Sead Fadilpašić

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Sead Fadilpašić

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Sead specializes in writing factual and informative articles to help the public navigate the ever-changing world of crypto. He has extensive experience in the blockchain industry, where he has served...

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June 4, 2025

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Though the crypto market cap is still down, the majority of the top 100 coins have seen their prices increase over the past 24 hours. The cryptocurrency market capitalization has decreased by 1.9% to $3.44 trillion. The total crypto trading volume is at $92.3 billion.

Crypto Winners & Losers

At the time of writing, four of the top 10 coins per market capitalization are green, four are red (not taking the two stablecoins into account). Bitcoin (BTC) is among the green coins, but it’s unchanged over the past day. It’s currently trading at $105,368.

Ethereum (ETH) appreciated 0.5% over the last day, now changing hands at $2,628. At the same time, the category’s highest gainer is XRP, which appreciated 1.8% to the price of $2.23.

Moreover, the highest decrease is Solana (SOL)’s 2.2% to $156. The rest, though red, are unchanged.

About 30 of the top 100 coins are now down, with the majority of these decreasing by around 1% or less per coin. The reddest of them is Fartcoin (FARTCOIN), which fell 7.4% to $1.05.

On the other hand, SPX6900 (SPX) is the highest gainer in this category.

As the market moves through this consolidation period, multiple technical factors indicate that we may be on the cusp of a breakout. For the moment, Bitcoin price prediction remains neutral, with the price in a narrow range.

Moreover, according to the Monthly Investment Outlook by the global digital asset banking group Sygnum, the US tariff-related uncertainty continues to be an issue for the global economy. Furthermore, the escalating fiscal challenges have placed pressure on the US Treasury markets and have contributed to dollar weakness.

That said, “the lower dollar supports global liquidity while the severity of the US debt situation compels liquidity injections, providing a positive backdrop for risk assets and for the crypto market,” the report says.

Why is Crypto Up Today: Potential Catalysts for the Next Leg of the Bull Cycle

According to the Sygnum analysts, the “tariff-related chaos and uncertainty continues.” The markets are sensitive to these challenges. However, the liquidity injections will likely stabilize the market, “as the alternative is a system collapse.” Combined with the lower dollar helping global liquidity, all this provides a positive backdrop for risk assets, including crypto.

Looking at Bitcoin, there is a continual positive demand trend, fueled by institutional adoption on the one hand, and BTC’s increased use as a safe haven asset on the other.

“Bitcoin’s fast-shrinking liquid supply is creating the conditions for demand shocks and upside volatility.”

That said, Bitcoin balances decreasing on exchanges are typically a bullish signal. It indicates that investors are withdrawing funds, aiming to hodl for the long term.

Bitcoin ETFs and acquisition vehicles are creating more demand from equity and fixed income investors in Bitcoin. That, coupled with governments exploring purchases for BTC reserves, “provides potential catalysts for the next leg of the bull cycle.”

Speaking of which, several countries have expressed interest in central bank Bitcoin reserves. However, even though “none of the officially approved reserves have commenced Bitcoin purchases yet, but when they do, this can be a pivotal price catalyst – both because of the demand it creates and because of the signalling effect.”

Meanwhile, looking at Ethereum, analysts found that the recent upgrade has fueled strong revenue growth. Additionally, traditional financial institutions are increasingly building tokenization platforms on Ethereum or its Layer 2 scaling protocols – or even building their own Ethereum-based L2s.

Per the report, “this is leading to a narrative shift from ‘Ethereum is losing its competitive edge’ to the expectation that it is the likeliest platform choice for major financial institutions due to its superior security and stability, underscored again by a recent bug on Solana.”

Levels & Events to Watch Next

BTC currently trades at $105,368. It again reached the intraday high of $106,807, but failed to keep it. Compared to its all-time high of $111,814, the coin is down 5.6%. It decreased by 3% in a week and rose by 11.4% in a month.

The Sygnum analysts reported that Bitcoin’s volatility has been trending lower over time. This follows the maturation of the market, deepening of the liquidity, and institutional involvement. For a store-of-value or investment, downside volatility is a drawback. That said, downside shocks have often been greater than upside shocks in BTC’s entire history, but over the past three years, “upside volatility has consistently exceeded downside volatility.”

Moreover, the Fear and Greed Index still stands within the neutral territory at 57 today. This indicates caution in the market, standing between fear and greed, likely waiting for additional signals to make the next move.

Moreover, sentiment has “improved sharply across the board on a more favourable macro backdrop, strong Bitcoin demand trends, and a long-awaited turnaround in Ethereum. Macro correlation has dissipated somewhat, and onchain activity increased sharply, driven in part by Ethereum’s recent upgrade,” analysts have noted.

Meanwhile, on 3 June, US BTC spot exchange-traded funds (ETFs) broke the brief net outflow streak, with an inflow of $378.04 million. Ark & 21 Shares and Fidelity led the inflows, with $139.93 million and $136.83 million, respectively. At the same time, US ETH spot ETFs continue the inflows streak, gaining another $109.43 million on 3 June. BlackRock leads this list with $77.06 million.

Legislators in the US are looking to pass bills on stablecoins and crypto market structure in the near future. “Optimistic estimates hope for bills to pass before autumn,” Sygnum says. However, controversy around the Donald Trump family’s conflicts of interest is causing delays in stablecoin regulation, it added.

Quick FAQ

1. Why did crypto move with stocks today?

Both the crypto and stock markets recorded two days of gains. The S&P 500 has increased by 0.58%, the Nasdaq-100 is up 0.79%, and the Dow Jones Industrial Average rose by 0.51%. Investors are waiting for more data on the labor market, which may impact stock prices. For now, the concerns over Donald Trump’s trade war and subsequent economic slowdown have somewhat subsided, but they could be significantly reignited by a potential tariffs-caused weakening in US employment in the coming months.

2. Is this rally sustainable?

It doesn’t seem that the market is ready for a bear yet. Analysts seem to agree that, while drops are always possible – even typical – the crypto market is positioning itself for the next rally. All it needs now is one or more of the above-mentioned catalysts to materialize.