Leading cryptocurrencies rallied on Wednesday on news that Bitcoin would be granted special status in the national strategic cryptocurrency reserve.

What Happened: The apex cryptocurrency surpassed $90,000, recouping gains lost due to the ongoing tariff announcements by President Donald Trump.

The momentum trickled to the rest of the market as Ethereum sailed past $2,500, hitting an intraday high of $2,272.80.

The improvement in sentiment came after Commerce Secretary Howard Lutnick indicated major policy announcements during Friday’s White House crypto summit. He confirmed that Bitcoin may receive special status in the national cryptocurrency reserve, but other tokens will be treated differently but positively.

The rally liquidated short positions worth $145 million from the cryptocurrency market in the last 24 hours.

Bitcoin's Open Interest popped 5.34%. A surge in spot price, coinciding with a jump in OI, indicated an influx of fresh money into the market.

More than 55% of traders on Binance were positioned long as of this writing, according to the Long/Short Ratio, implying a bullish sentiment.

In contrast, the Crypto Fear and Greed Index remained in the "Extreme Fear" zone.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $2.96 trillion, following an increase of 3.30% in the last 24 hours.

Stocks recovered on Wednesday following two consecutive days of losses. The Dow Jones Industrial Average jumped 485.60 points, or 1.14%, to close at 43,006.59. The S&P 500 gained 1.12%, ending at 5,842.63, while the tech-focused Nasdaq Composite added 1.46% to close the session at 18,552.73.

The recovery came after the Trump administration paused tariffs on automobile manufacturers' imports by one month, sending stocks of big automakers higher.

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Analyst Notes: Widely followed cryptocurrency analyst, Ali Martinez, stated that if Bitcoin reclaims $97,000, there is a strong chance of it moving toward $150,000, according to the Pi Cycle Top indicator.

The Pi Cycle Top Indicator is a technical indicator used to identify potential tops in Bitcoin’s price cycles.

Popular on-chain analytics firm Santiment noted a sharp drop in Ethereum sentiment owing to its underperformance relative to other large-cap cryptocurrencies. 

"For those patiently holding their ETH, the bearishness being projected across social media is a good sign of a potential turnaround once crypto markets stabilize," the analytics firm predicted.

Photo by CMP_NZ on Shutterstock

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