On April 21, 2025, the cryptocurrency market underwent a significant recovery, capturing a period of volatility driven by macroeconomic uncertainty and global trade tensions. Bitcoin led the rally, jumping more than 3% to $87,337.31, while Altcoins joined the uptrend, indicating a market revival.
Crypto Market Snapshot
Bitcoin is the world’s largest cryptocurrency, climbing more than 3% to more than $87,000, a significant breakthrough in its recent $83,000 to $86,000 trading range.
Giant hat tokens like $ETH also followed suit, reverting to $1,644, while XRP $2.12 reflects a wider market rise. Other AltCoins (such as $140) have also experienced $SOL gains, which has led to a total market cap increase to about $2.74 trillion, up from $2.5 trillion at the beginning of the week. Meanwhile, amid global economic uncertainty and inflationary pressures, demand from investors has been strong, and gold prices have soared to an all-time high of $3,400.
Source: COIN360
Factors that drive recovery
The macrocatalyst behind cryptoprotein recovery
The key catalyst for cryptocurrency market recovery is the sharp decline in the U.S. dollar, hitting three-year lows for the major currencies pointed to by Coindesk. The dollar index fell below 98, driven by hedge funds in the forex markets of currencies sold by other major currencies such as Europe, JPY and AUD. As the dollar weakens, investors seek alternatives due to a focus on inflation and the focus on Bitcoin and gold as a focus on hedgeless Fiat currency.
Source: TradingView
President Donald Trump’s exploration of ways to challenge the stance of Fed Chairman Jerome Powell triggered this decline, raising concerns about the damage to the Fed’s independence.
In addition, global liquidity has caused a famous rise driven by the expanding M2 money supply.
Total M2 in the United States, Europe, Japan and China grew steadily from December to February to $90.2 trillion, according to Macromicro data.
These macroeconomic shifts pushed Bitcoin’s rally to $87,000, while altcoins benefited from wider market optimism, with Gold growing at 2% on the same day.
Big Buyers Appear: Institutional Bitcoin Bets Increase
Institutional investors have played a key role in the recovery of cryptocurrency markets, and despite recent volatility, strong belief in the long-term value of Bitcoin shows. Strategy (formerly known as MicroStrategy) made headlines earlier in April 2025, earning another $3,459 in BTC during a time of market uncertainty. The move reflects the strategic commitment to Bitcoin as a Treasury reserve asset, although the company reported that it caused $5.91 billion in unrealized losses in its Bitcoin holdings due to underperforming its assets in the early stages.
Additionally, according to the neighborhood, Japan-based Metaplanet purchased $330 in BTC today, boosting market confidence, increasing its total holdings to $4,855 in BTC. The actions of these companies underscore Bitcoin’s continued acceptance of hedging against macroeconomic uncertainty, which contributes to the upward momentum of the market.
A real uptrend or a temporary surge?
Despite the rally, this upward movement is still driven by anxiety rather than a confirmed upward trend. Bitcoin soared with the Bitcoin Advantage (BTC.D) index and remained higher by 64%. However, due to weak Altcoin performance and low trading volume, the direction of the broader market remains uncertain.
In May 2025, a more obvious trend may occur when the Fed meets, and China may begin to develop policies with the United States, especially when President Trump shows signs of softening trade rhetoric. Prior to this, market development was led primarily by Bitcoin, reflecting cautious optimism due to macroeconomic fears rather than ongoing bullish cycles.
