Bitcoin Surges 3.5% as US-Vietnam Trade Deal Boosts Crypto Market

The crypto market has seen a significant surge today, with Bitcoin leading the charge. The price of Bitcoin jumped by 3.5% in the past 24 hours, nearing its all-time high of $111,970 after a period of sideways movement. This rally has added $150 billion to the global crypto market, driving the total market cap to $3.37 trillion.

One of the primary catalysts behind today’s rally is the tariff update from the White House. The announcement of a new trade deal with Vietnam, under which Vietnam will eliminate all tariffs on U.S. goods, has created a favorable environment for American trade. This deal is expected to boost economic activity and potentially drive more investment into the crypto market.

Another significant factor contributing to the rally is the surge in the US M2 money supply. The M2 money supply, a measure of how much money is flowing into the economy, jumped 4.5% in May, reaching a record $21.94 trillion. This marks the 19th consecutive month of growth and has historically been correlated with an increase in Bitcoin prices. This trend suggests that the recent surge in the money supply could push Bitcoin prices higher in the coming weeks.

Bitcoin spot ETFs have also seen substantial inflows, with $407.8 million flowing in on July 2. Leading the pack were Fidelity, Ark Investment, and Bitwise, which saw inflows of $184 million, $83 million, and $64.9 million, respectively. This institutional interest is a key driver of Bitcoin's price increase, as more investors seek exposure to the digital asset.

Short traders have also played a role in the rally. In the last 24 hours, traders betting against Bitcoin were forced to close losing positions, with about $248.85 million of the total $294.5 million coming from short positions. This liquidation of short positions has helped to drive the price of Bitcoin higher, as the market corrects for the overleveraged short positions.

The rally is not limited to Bitcoin. Ethereum, XRP, Solana, and Cardano have each gained around 5%, while memecoins like Dogecoin and Shiba Inu are up by 5%–8%. The overall crypto market sentiment remains bullish, with investors optimistic about the future of digital assets.

Some of the top gainers in the market today include Bonk, which is up by 22.36%, Dogwifhat (WIF), which is up by 18.4%, and Celestia (TIA), which is up by 15.75%. On the other hand, some of the top losers include Four (FORM), which is down by 3.3%, Pudgy Penguins, which is down by 2.3%, and Bitcoin Cash, which is down by 0.26%.

In summary, the crypto market's surge today is driven by a combination of factors, including the U.S.-Vietnam trade deal, the surge in the US M2 money supply, substantial inflows into Bitcoin spot ETFs, and the liquidation of short positions. These factors have contributed to the market's upward momentum, with Bitcoin leading the charge and other cryptocurrencies following suit. However, investors must remain cautious and stay informed about regulatory developments to navigate the complex and volatile crypto market effectively.