Analysts: Crypto rally driven by less tax selling, safe-haven demand

The cryptocurrency market is seeing a broad-based rally, driven by a decline in tax-motivated trading and a growing preference for safe-haven assets amid geopolitical risks, according to recent analysis. Markus Thielen, CEO of 10x Research, stated that market sentiment is improving, with both BTC and ETH shifting to an upward trend, Coindesk reported. He suggested that tax-related selling has decreased following the expiration of options at the end of last month, adding that corporate trading desks are expected to secure liquidity to diversify risk. Separately, Ryan Lee, a senior analyst at Bitget, noted that escalating geopolitical risks, such as the U.S. attack on Venezuela, are boosting investor demand for safe havens. Lee interpreted the rally as a sign that the crypto market may be attracting capital from traditional safe-haven assets like gold.