The crypto market is soaring today, with Bitcoin price rising past $106,000, down from this week’s low of $99,400, and the valuation of all tokens recovering back to $3.67 trillion.

Nearly all of the top 100 cryptocurrencies by market cap were in the green, led by Bitcoin (BTC), which rose 4.5% over the past 24 hours, nearly offsetting all of its losses from the past 7 days. Ethereum (ETH) was hovering back above $3,600, up 6.5%, while XRP (XRP), Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) extended their recovery from the weekend drop with gains ranging between 5% and 9% at press time.

The Crypto Fear & Greed Index jumped 7 points in the past 24 hours to 29, recovering from ‘Extreme Fear’ to the more moderate ‘Fear’ zone, which can be interpreted as an early sign that traders may be gradually shaking off the risk-averse mood that has prevailed over the past trading sessions.

Crypto market rally sparked by Trump’s tariff dividend proposal

Crypto markets are rallying after former President Donald Trump announced a proposed $2,000 tariff dividend for most American adults (not including high-earning citizens).

In a Truth Social post on Nov. 9, Trump claimed the United States is generating trillions of dollars in tariff revenue and suggested that the funds could be used both to reduce the country’s $37 trillion national debt and to fund direct payments to citizens.

While the announcement has generated excitement in the crypto market, it is important to note that the proposal is still in its early stages, and no official legislation has been introduced yet.

The news sparked a broad crypto market rebound after a steep weekly slide that saw total market capitalization tumble nearly 9.4% to $3.45 trillion before bouncing back.

Traders appear to be pricing in the possibility of higher consumer spending and stronger market inflows in the coming weeks if the proposed dividend moves closer to reality.

Senate advances deal to end government shutdown

Another driver behind today’s crypto rally is progress toward bringing an end to the longest government shutdown in the United States’ history.

On Nov. 9, Senate lawmakers advanced a funding bill that, if passed in the coming days, could reopen federal operations that have been stalled since Oct. 1. 

The shutdown has weighed on investor sentiment as it has stalled progress around several crypto ETF launches and delayed key economic data necessary for the Federal Reserve to decide on whether it would bring additional rate cuts this year. 

While the bill has not yet been finalized, the development marked the first real progress after weeks of uncertainty.

Short liquidations support the uptrend

Today’s crypto market rally was amplified by a massive wave of short liquidations that forced bearish traders to exit their positions.

In the past 24 hours alone, over $262 million in short positions were wiped out, accounting for the majority of the total liquidations.

At the same time, derivatives traders appeared to double down on bullish positioning. Bitcoin’s open interest climbed 4.65% in the past 24 hours to $33.5 billion, driven almost entirely by a surge in perpetual contracts.

Meanwhile, the long-short ratio across Binance suggested that sentiment among top traders had flipped firmly in favor of the bulls.