Why Is Crypto Market Up Today: Key Drivers and What Next to Watch?

The global crypto market just hit $3.92 trillion, rising 1.2% in the last 24 hours — but what’s fueling this massive surge? From Jerome Powell’s latest remarks to a surprising US-China tariff truce, investors are witnessing a powerful wave of optimism ripple through digital assets.

Fed’s Softer Stance Fuels Investor Confidence

In his Chicago speech on October 14, 2025, Federal Reserve Chairman Jerome Powell hinted that the central bank could end its balance sheet reduction program “in the coming months.” This marks a major pivot in US monetary policy. Since 2022, the Fed has cut its holdings from $9 trillion to $6.6 trillion, tightening liquidity to combat inflation.

However, rising overnight funding rates and a cooling labor market have prompted a shift. Powell stated that “labor market risks now outweigh inflationary pressures,” suggesting a softer stance and confirming that the Fed remains on track for additional rate cuts after already lowering them to 4.00%-4.25% in September.

This announcement comes at a crucial time, coinciding with Trump’s renewed tariffs on Chinese imports, which rekindled US-China trade tensions . However, new settlement agreements are helping stabilize global space, giving both stocks and crypto assets a reason to rally.

Bitcoin and Ethereum ETFs Record Massive Inflows

While macroeconomic optimism plays its part, ETF inflows show where the money is really moving. As of October 14:

• US Spot Ethereum ETFs saw $236.22 million in daily net inflows, bringing the cumulative total to $14.72 billion.
  

• US Bitcoin Spot ETFs added $102.58 million in daily inflows, pushing their cumulative total to $62.55 billion.
  

These figures highlight renewed institutional demand, signaling that large investors see long-term value in digital assets amid easing monetary policies.

ChainOpera AI, BAS, and Yei Finance Lead the Surge

Among the top gainers, ChainOpera AI (COAI) exploded 134% to $19.90, with a market cap of $3.9 billion, emerging as today’s biggest mover. BNB Attestation Service (BAS) followed with a 135% rise to $0.1162 and a $290 million cap, while Yei Finance (CLO) jumped 100% to $0.6612, reaching $86 million in valuation.

Source: CoinGecko

These tokens’ sharp upward momentum underscores the growing investor appetite for AI-driven and BNB ecosystem projects, showing that risk sentiment is firmly back.

What’s Next for the Crypto Market?

With the Fed meeting on October 29, 2025, and tariff agreements still evolving, volatility is expected to remain high. Analysts suggest that if the Fed confirms another rate cut or halts quantitative tightening, the crypto could extend its rally — potentially pushing Bitcoin closer to new yearly highs.

Conclusion

The crypto market is soaring thanks to Powell’s dovish tone, rising ETF inflows, and easing global trade tensions. As investors eye the upcoming Fed meeting, momentum remains bullish. However, participants should brace for sharp moves — as monetary shifts and geopolitical updates continue shaping crypto’s next big trend.

Disclaimer: This article is for informational purposes only, not to be considered as financial advice. Do your own research before investing.