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The crypto market's rebound picked momentum during the weekend, with its intraday gains drawing cues from the shocking assassination attempt on former president Donald Trump.
<h2 id="trump-s-growing-reelection-bid-boosts-crypto-demand">Trump's growing reelection bid boosts crypto demand</h2>
The crypto market's valuation jumped by 2.88% hours after gunfire erupted at Trump’s Pennsylvania rally, with the former president surviving the assassination attempt. Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) price also rose above $60,000 for the first time in 10 days.
Interestingly, MAGA (TRUMP), the largest Donald Trump memecoin, also <a href="https://cointelegraph.com/news/donald-trump-memecoin-price-soars-following-assassination-attempt">surged</a> by more than 30% after the assassination attempt.&nbsp;
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/d70791dc-735a-4617-a4c2-25f4c38eef02.png" alt="Why is the crypto market up today?" title="">
 <figcaption style="text-align: center;">
 TOTAL crypto market capitalization hourly performance chart. Source: <a href="https://www.tradingview.com/symbols/TOTAL/?exchange=CRYPTOCAP" target="_blank" rel="noopener nofollow">TradingView</a>
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</figure>
This upward movement indicates that many crypto traders anticipate a Trump victory in November’s upcoming US presidential election. Such an outcome could lead to <a href="https://cointelegraph.com/news/donald-trump-president-campaign-cryptocurrency-adoption-global">more favorable crypto regulations</a> than the current stringent policies under Joe Biden’s administration.
"Based on Bitcoin’s reaction so far, looks like markets are going to begin pricing in a full Trump victory," <a href="https://x.com/reflexivityres" target="_blank" rel="noopener nofollow">noted</a> Will Clemente, founder of crypto research firm Reflexivity Research.
<h2 id="crypto-derivatives-market-is-bullish">Crypto derivatives market is bullish</h2>
The open interest (OI) of all top-ranking cryptocurrencies <a href="https://www.coinglass.com/" target="_blank" rel="noopener nofollow">has risen</a> in the past 24 hours, especially after the Trump news. Moreover, most of these assets show positive funding rates, suggesting long traders pay a fee to short trades to keep their bullish positions open.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/4b527924-80e6-44e4-b281-0f6c8e9c6f4f.png" alt="Why is the crypto market up today?">
 <figcaption style="text-align: center;">
 Top 10 crypto assets and their derivatives data. Source: Coinglass
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The rise in OI and positive funding rates suggest that most traders have a strong bullish sentiment. They are willing to pay a premium to maintain their long positions, reflecting their confidence in the market's upward movement.
Related:&nbsp;<a href="https://cointelegraph.com/news/what-s-next-for-bitcoin-price-now-that-german-gov-t-btc-balance-hits-zero">What’s next for Bitcoin price now that German gov't BTC balance hits zero?</a>
Furthermore, the crypto market's gains in the past 24 hours coincide with the relatively higher liquidation of short traders than the long ones. As of July 14, the market had witnessed $65.41 million worth of short liquidations compared to $22.93 million in long liquidations.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/a5c5eda0-1b30-4338-b48b-55670020b0d1.png" alt="Why is the crypto market up today?">
 <figcaption style="text-align: center;">
 Crypto liquidation heatmap. Source: Coinglass
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When a short position is liquidated, the trader must buy back the asset to cover their position. This buying pressure increases the demand for the asset, driving up its price.
<h2 id="descending-channel-bounce">Descending channel bounce</h2>
From a technical perspective, today’s crypto market gains are part of a consolidation trend inside a prevailing descending channel pattern.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/96124bd3-90b7-4c22-ac13-169ada960cee.png" alt="Why is the crypto market up today?">
 <figcaption style="text-align: center;">
 TOTAL crypto market cap. Source: TradingView
 </figcaption>
</figure>
The crypto market tested the channel's lower trendline as support for the fourth time since March, a move that has lately preceded sharp rebounds. As of July, the market is visibly repeating the fractal, eyeing the 50-day exponential moving average (50-day EMA; the red wave) at around $2.23 trillion as its immediate upside target.
A decisive close above the 50-day EMA could have the market pursue a run-up toward the channel’s upper trendline, akin to its recent bounces. The upper trendline aligns with $2.42 trillion, which served as support during the May-June 2024 session.
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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