Here’s what may trigger the next crypto market rally

The crypto market remains in a bear market, with Bitcoin and most altcoins falling by double digits from the all-time high.

Bitcoin (BTC) price is stuck at $67,000, down substantially from the all-time high of $126,300. The Ethereum (ETH) token has dropped to $2,000 from the all-time high of nearly $5,000.

The market capitalization of all tokens has dropped from the all-time high of $4.3 trillion to the current $2.34 trillion.

Still, two main catalysts may trigger the next crypto market rally. First, data shows that the Crypto Fear and Greed Index remains in the fear zone of 21.

In most cases, crypto prices often bounce back whenever this gauge is in the fear zone, as we experienced last year when it dropped to 10 after Trump announced new tariffs.

Crypto market rally to start when Trump capitulates

The other potential catalyst that may trigger a crypto market rally is that Donald Trump may capitulate on his war in Iran.

This capitulation will happen if the stock market continues falling and crude oil prices keep soaring.

Data shows that the Dow Jones Index has dropped by over 7% from its all-time high, and futures point to a 580-point drop.

Similarly, the S&P 500 Index has dropped by 4.9%, while the Nasdaq 100 has dropped by over 5% from its all-time highs.

Trump always pays close attention to the stock market, which he believes is a good gauge for his performance.

Therefore, if the stock market continues falling, he will likely capitulate and hint towards talks or ending the war.

He may also hint at completing his mission of killing Ayatollah Ali Khamenei, dismantling Iran’s nuclear and missile programs. 

Trump may also capitulate because of the soaring crude oil prices, with Brent and West Texas Intermediate rising above the key support level at $100. Higher oil prices will push inflation higher this year and make it hard for the Federal Reserve to cut interest rates.

An end to the war will be bullish for the crypto market as we experienced on Wednesday last week when the New York Times reported that Iran had reached out to the United States for talks. Bitcoin and most altcoins jumped after that report and then pulled back after Iran disputed it.