The cryptocurrency market's total value has climbed back above $3 trillion, returning to that threshold for the first time since January, according to data from CoinGecko. Total market capitalization — the combined value of all cryptocurrencies tracked by the aggregator — is one of the most widely watched gauges of the asset class's overall size, and round-number levels like $3 trillion tend to serve as reference points for traders gauging momentum. The recovery caps a run that has added more than $740 billion in less than three weeks — a stretch that began after the U.S. Treasury said last month it would buy back more long-dated bonds. Treasury buybacks, in which the government repurchases outstanding securities as part of managing the federal debt, are tracked by risk-asset traders for what they signal about liquidity management.

Bitcoin cools after touching $87,381

Bitcoin drove the advance, racing almost 8% higher during the U.S. session and touching $87,381, its strongest price since January, before back to around $86,000. The reading marked an eight-month high for the asset.

Leverage climbs as shorts get squeezed

Traders show little sign of retreating from risk. Money tied up in perpetual futures has climbed to almost $160 billion across the market, the highest level since late October of last year, according to Coinglass data. Open interest of that scale means a larger pool of capital is committed to leveraged positions, where abrupt moves can force rapid unwinds once margin requirements are breached.

The sudden spike on Monday caught bears off guard, wiping out more than $920 million in short bets. As long as prices keep rising, mounting pressure on bearish speculators could force them to cover their losses by buying, which would push prices even higher. Notably, futures exposure has continued to increase despite the wave of short covering.

Wall Street quieter by comparison

Wall Street had a much calmer session. The Nasdaq Composite rose 0.2% after setting another fresh intraday record, and Sandisk shares jumped 4% after Rosenblatt issued a bullish call on the company. The S&P 500 was essentially flat, while the Dow fell 270 points, or 0.5%.

Iran hangs over the backdrop

Iran is also sitting in the background of the day's trading. Speaking at the United Nations General Assembly, President Donald Trump said he is weighing whether to reach an agreement with Tehran or take much more aggressive military action. Trump added that he thinks a deal could come after the U.S. midterm election, arguing that Iran is waiting to see how he performs politically. Reuters also reported Tuesday that Trump raised the possibility of a post-election agreement while warning of further action if talks fail.

Oil barely reacted to the headlines. Brent crude was up less than 1% at roughly $100 a barrel, while U.S. crude was also less than 1% higher at around $96. With oil barely moving on the news, the evolving U.S.–Iran dynamic remains a developing story for traders to monitor rather than an active driver of the day's price action.

Crypto, in short, is back above $3 trillion as Bitcoin cools from its latest high and leverage continues to build. The markers worth watching from here: whether total market value holds above the $3 trillion line, how futures positioning evolves from its near-$160 billion footprint, and whether the post-midterm window Trump described for a possible Iran deal comes into view.

Source: Cryptopolitan