The cryptocurrency market extended its recovery for a second consecutive day on Tuesday, April 1, 2026, rising 2.1% over the past 24 hours to reach a total market capitalization of $2.45 trillion. The rally was broad-based, led by Bitcoin and major altcoins, and fueled by a combination of geopolitical developments, significant short liquidations, and continued inflows into spot exchange-traded funds (ETFs).
Bitcoin (BTC), the market bellwether, rose 2.4% to a six-day high of $69,000, with a daily trading volume of $54.65 billion. Ethereum (ETH) outperformed with a 4.2% gain, pushing its price back above $2,100 to $2,140.16. Other major assets posted solid gains: XRP (XRP) increased 3.4% to $1.36, Dogecoin (DOGE) rose 3.1% to $0.09404, BNB (BNB) gained 1.4% to $618.35, and Solana (SOL) climbed 1.8% to $84.31.
The primary catalyst for the improved risk appetite was anticipation of an important update from U.S. President Donald Trump regarding ongoing tensions with Iran, scheduled for 9 PM ET. Reports suggested Trump was considering ending the U.S. war with Iran, even if the strategic Strait of Hormuz remains closed. This potential de-escalation eased pressure from elevated oil prices, which had previously driven investors toward safe-haven assets. The initial impact was seen in energy markets, with West Texas Intermediate (WTI) and Brent crude oil prices both falling 4% to below $100.
Technical factors added momentum to the rally. Data from CoinGlass shows over $200 million in short positions were liquidated in the past 24 hours, triggering a squeeze that accelerated bullish momentum. Furthermore, spot Bitcoin ETFs recorded $117 million in net inflows, extending their streak to a second day, while spot Ethereum ETFs drew in $31 million.
The rally also featured explosive gains among smaller-cap tokens. Algorand (ALGO) surged 20.5%, StakeStone (STO) skyrocketed 85.0%, and MANTRA (OM) and Blur (BLUR) each gained over 30%, highlighting intensified activity in high-growth market segments.