Why Are the Crypto Asset Markets Rising Today?

On April 10, the crypto asset market traded at US$2.41 trillion, slightly up from the previous close due to a short squeeze in US$248 million positions prompting buyers to enter earlier.

Bitcoin
BTCUSD
rose 1.4%, outperforming the overall market, while Zcash (ZEC) surged 17% after breaking out of a bearish channel that has persisted since late January. The privacy crypto sector also rose 6.7% along with ZEC's rally.

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Insiders in Trump support the CLARITY Act on April 9, where former crypto czar David Sacks, CFTC Chairman Michael Selig, SEC Chairman Paul Atkins, and Treasury Secretary Scott Bessent all urged the Senate to pass this bill immediately before the Banking Committee reconvenes on April 13. Senator Bernie Moreno warned that if the bill doesn't pass by May, digital asset regulation could be delayed until after the November midterm elections.
Amy Oldenburg from Morgan Stanley, Head of Digital Asset Strategy, told Bloomberg TV that the spot Bitcoin ETF MSBT had its best trading day ever for any Morgan Stanley ETF. The product launched on April 8 with a management fee of 0.14%, the lowest among all other BTC spot products.
Ethereum staking ratio hit 30% for the first time, setting a record high with ETH staked worth about US$85 million as network security. This achievement occurs as the Ethereum Foundation continues its plan to convert 5,000 ETH into stablecoins for grant funding and R&D.
Crypto Market Holds at US$2.41 Trillion as Short Squeeze Sparks Rally

Total crypto market capitalization reached US$2.41 trillion on April 10, up 0.63% from the previous close. The initial surge was triggered by a short squeeze that liquidated US$247.89 million in short positions over the past 24 hours, about 73% of the total US$340.10 million liquidated involving 123,299 traders.

However, momentum is beginning to show signs of slowing. Long liquidations have increased in recent hours, and the market has also lost some intraday gains after being rejected at US$2.44 trillion. This two-way liquidation activity signals a whipsaw condition, where both buyers and sellers can get trapped at the ends of price movements.

The lower support at US$2.39 trillion held during the April 8 and 9 sessions, making this level now tested. To move higher, US$2.44 trillion and US$2.49 trillion at the 0.618 level must be broken. If prices succeed above US$2.49 trillion, the path opens toward US$2.56 trillion and US$2.65 trillion. If US$2.39 trillion breaks, focus shifts to US$2.33 trillion and US$2.23 trillion.

As long as the market remains trapped between US$2.39 trillion and US$2.44 trillion, every rally risks fading, and every dip could be quickly bought.

Bitcoin Leads Rally as Morgan Stanley ETF Hits Record

Bitcoin traded at US$71,858 on April 10, up 1.4% in the last 24 hours, outperforming the overall crypto market. This rally was supported by the launch of Morgan Stanley’s MSBT ETF, which Amy Oldenburg described on Bloomberg TV as the best first trading day in Morgan Stanley ETF history.

This institutional signal is significant. Now, 16,000 Morgan Stanley financial advisors and trillions of client assets have a product to recommend. Moreover, this record debut indicates that demand from advisors has been waiting since the start.

Regulatory push from the CLARITY Act by four senior figures on April 9 adds further optimism for the market.

From a technical perspective, Bitcoin needs about a 2% increase to test US$73,249 at the Fibonacci 0.618 level. BTC has not touched this line since April 7. If it breaks above US$73,249, the next targets are US$75,511 and US$78,392. If the price drops below US$71,660 at the 0.5 level, attention shifts to US$70,072 and US$68,106.

A daily close above US$73,249 will maintain the bullish structure, while a daily close below US$71,660 opens the possibility of retesting US$70,072.

Zcash (ZEC) Successfully Breaks Out of 73-Day Bearish Channel

Zcash (ZEC) is trading at US$367.27 after rising about 17% in the last 24 hours. This increase makes it one of the top gainers among major tokens. The privacy coin sector overall also rose 6.7% along with ZEC, indicating increased buying interest not limited to just one token.

Its technical significance goes beyond daily gains. Since January 27, ZEC has been moving within a declining channel on the daily chart. Each rally has remained within the channel’s bounds. But this latest move is different because ZEC managed to break above the upper trendline for the first time in 73 days, turning the bearish structure neutral to bullish.

If ZEC stays above US$341, the breakout target is at the Fibonacci extension 1.618. If it surpasses US$433, the rally could continue toward US$583. However, if it falls back below US$341, the current positive momentum could weaken. And if the price drops below US$284, the bullish potential could become invalid.

Currently, the US$433 level acts as a boundary separating the confirmed breakout channel from the potential failed pattern that could trap buyers back into the 73-day bearish structure.