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The cryptocurrency market is up today, with the total market capitalization rising by 2.65% over the past day to $2.38 trillion on April 22. Leading these gains are top cryptocurrencies, Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) and Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>), which jumped 2.40% and 2.80% on the same day.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-04/a472490f-1ea0-4d20-b585-20e59e46ae41.png">
 <figcaption style="text-align: center;">
 TOTAL crypto market capitalization versus BTC/USD and ETH/USD daily performance chart. Source: TradingView
 </figcaption>
</figure>
<h2 id="return-of-risk-on-mood">Return of risk-on mood</h2>
The crypto market's gains today coincide with the return of risk-on mood across traditional markets.
On April 22, the S&amp;P 500 futures advanced by up to 0.33% to 5,031 points, indicating that investors' focus was shifting away from escalating <a href="https://cointelegraph.com/news/btc-price-65k-rumor-middle-east-tensions-bitcoin">geopolitical tensions in the Middle East</a> to this week's corporate earnings release, including reports from Big Tech giants such as Microsoft, Meta, and Alphabet.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-04/56d59b9c-034c-466b-abd9-14cb2e1ed1d2.png">
 <figcaption style="text-align: center;">
 S&amp;P 500 E-mini futures daily performance chart. Source: TradingView
 </figcaption>
</figure>
Almost two-thirds of the 409 respondents of Bloomberg’s latest Markets Live Pulse <a href="https://www.bloomberg.com/markets-weekly-mliv-pulse-survey" target="_blank" rel="noopener nofollow">survey</a> believe that earnings will boost the U.S. equity benchmark. This is the highest confidence in corporate profits since the survey started in October 2022.
The positive outlook on the S&amp;P 500 is also lifting the cryptocurrency market, helped by the rise in their 30-day average correlation to the most positive level in a month at 0.82.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-04/046d8b64-2111-4625-bb07-649edce04ba9.png">
 <figcaption style="text-align: center;">
 TOTAL crypto market capitalization and SPX 30-day average correlation coefficient. Source: TradingView
 </figcaption>
</figure>
Interestingly, the Bitcoin-S&amp;P 500 started to rise after Iran's missile and drone attacks on Israel on April 13, which dampened investors' risk-on mood.
<h2 id="bitcoin-etf-net-inflows-are-positive-again">Bitcoin ETF net inflows are positive again</h2>
Today's gains in the crypto market are part of a recovery that began when net inflows into spot Bitcoin exchange-traded funds (ETFs) <a href="https://cointelegraph.com/news/bitcoin-halving-breaks-etf-outflow-streak">turned positive</a> after significant outflows.
On April 19, these funds collectively received about $60 million, marking the first positive daily net flow after experiencing $319 million in outflows over the previous seven days. Since then, the crypto market's capitalization has bounced by about 14%.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-04/033ea27b-4291-4177-b93c-10413184be9d.png">
 <figcaption style="text-align: center;">
 Bitcoin ETF net flow daily performance table. Source: Farside Investors
 </figcaption>
</figure>
A net inflow into Bitcoin ETFs after a period of price declines indicates that investors are confident about future gains. So, they are using the downturn as an opportunity to buy at lower prices with the expectation that the crypto market will recover.
Related:&nbsp;<a href="https://cointelegraph.com/news/btc-trades-deep-discount-after-halving-5-things-bitcoin-this-week">BTC trades at 'deep discount' after halving — 5 things to know in Bitcoin this week</a>
<h2 id="increasing-activity-across-crypto-derivatives">Increasing activity across crypto derivatives</h2>
The crypto market's gains today further coincide with increasing trading activity in the derivatives market.
For instance, the market’s open interest (OI) in options and futures markets has grown 1.84% and 1.19% in the last 24 hours, showing an increase in speculation among retail investors. A similar sentiment is visible among institutional investors, with CME's Bitcoin Futures OI rising 1.70% in the same period.&nbsp;
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-04/f1d70d52-e451-46ca-99eb-da094ac8e3f2.png" alt="" title="">
 <figcaption style="text-align: center;">
 Crypto derivatives metrics 24-hour performance. Source: <a href="https://www.coinglass.com" target="_blank" rel="noopener nofollow">Coinglass</a>
 </figcaption>
</figure>
An 8.81% rise in 24-hour futures volume was also evident. This growth indicates that the market's liquidity is rising, which typically contributes to a more stable trading environment. 
Increasing activity in the futures markets can often precede spot market movements, hinting at growing investor confidence.
<h2 id="a-sharp-technical-rebound-is-underway">A sharp technical rebound is underway</h2>
Today's crypto market gains appear as various indicators suggest the market is leaning bullish.
For instance, the chart below shows the market cap rebounding from the lower trendline of what appears to be a <a href="https://cointelegraph.com/news/what-is-a-bull-flag-chart-pattern-and-how-to-spot-it">bull flag</a>. This bullish continuation pattern resolves when the price breaks above the upper trendline and rises by as much as the height of the previous uptrend.
As a result of this technical rule, the crypto market's next upside target is at around $3.25 trillion.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-04/944c5a3e-530e-4c30-b665-baf8768cf0bc.png">
 <figcaption style="text-align: center;">
 TOTAL crypto market capitalization daily chart. Source: TradingView
 </figcaption>
</figure>
Adding to the bullish outlook is the proximity of the rebound to the market's multi-month ascending trendline support. The fact that the market cap has bounced off this line reinforces the support level, suggesting that the long-term bullish trend remains intact.
Furthermore,&nbsp;the market’s daily relative strength index (RSI) reading indicates that psychological support is at around 38, a point at which rebounds of around 80% have previously occurred.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Why is the crypto market up today?

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