Why is crypto going up? 4 key reasons behind the rally

Crypto prices bounced back on Thursday as the mood in the financial market shifted from extreme fear to euphoria within hours.

The primary catalyst was Donald Trump’s decision to pause his ‘reciprocal’ tariffs on over 70 countries, easing worries that the U.S. was heading toward a major recession, given that it is one of the largest importers globally.

Bitcoin and other altcoin prices also rose after the encouraging consumer inflation data. The headline inflation dropped from 2.8% to 2.4%, while the core figure fell from 3.1% to 2.8%.

Third, prices climbed after Donald Trump hinted that Republicans were working together to pass his “Big, Beautiful Bill,” his flagship tax proposal.