Cryptocurrencies Poised for Further Gains as Market Risk Appetite Grows

May 13, 2025 ( Newswire) , rated as a top 100 investment website for investment including bitcoin stocks, issues market commentary from Samer Hasn, Senior Market Analyst at


Cryptocurrencies Poised for Further Gains as Market Risk Appetite Grows

Bitcoin appears to be stabilizing today following a two-day pullback-a correction to the recent rally that had propelled prices to their highest levels since January.

This potential return to an upward trajectory in the cryptocurrency market comes as concerns over the trade war and the U.S. economic outlook continue to ease. These developments are helping to revive risk appetite-an essential ingredient for sustaining rallies in high-risk asset classes.

The shift in sentiment began when Donald Trump initiated a de-escalation of the trade conflict, culminating yesterday in the announcement of a suspension of the sweeping reciprocal tariffs between the United States and China. This “trade truce” is precisely what markets had been anticipating, especially after a series of signals and statements pointing to a reduction in tension that emerged over the past two weeks. The move could pave the way for a broader trade agreement, potentially dispelling the prevailing uncertainty that has weighed on markets.

Following the announcement, Goldman Sachs revised its outlook, lowering the probability of a U.S. recession from 45% to 35%, and raising its GDP growth forecast for 2025 from 0.5% to 1%.

Markets had already been recovering rapidly since the initial signs of de-escalation. Investor fears have been steadily receding. The VIX, often referred to as the “fear index,” had previously surged to levels not seen since the 2008 global financial crisis amid heightened trade tensions. Yet, as of yesterday, it dropped to its lowest point since March-completely erasing the spikes that followed the so-called “Liberation Day” in early April.

Meanwhile, the Nasdaq 100 recorded its second-largest daily gain of the year yesterday, rising by more than 4%. These moves from both the VIX and Nasdaq 100 underscore investors’ growing appetite for risk.

Indicators within the cryptocurrency market itself also continue to signal strength in the bullish trend. The open interest-weighted funding rate for bitcoin futures remains near its highest level this year, according to CoinGlass. This suggests speculators are increasingly accumulating long positions.

User activity within crypto protocols is also on the rise. The Total Value Locked (TVL) across decentralized finance platforms earlier this week reached approximately $119 billion-the highest level since January, according to DeFiLlama. Ethereum and its layer-two (L2) scaling solutions account for the bulk of these inflows, commanding over $70 billion.

Layer-two solutions have recently seen a surge in activity. Yesterday, they recorded a new all-time high in chains throughput – gas consumption that used to pay for transaction fees, in another word-reaching nearly 75 million gas units per second. Notably, the Base L2 network alone accounted for roughly half of this figure.

This combination of elevated risk appetite and growing adoption of crypto technologies may pave the way for further gains, provided market conditions remain favorable and are not clouded once again by the high levels of uncertainty that dominated earlier this year.

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