Why is crypto up today?

The crypto market is up today because selling pressure has eased after a volatile stretch, allowing a broad relief bounce. These “green days” are often driven by positioning (short covering, dip buying, volatility re-pricing), and they become meaningful only if they get follow-through from spot demand and improving liquidity.

Key Takeaways

Yahoo Finance reported total crypto market cap up about 2.5% over 24 hours to roughly $2.72T. (Yahoo Finance)
Broad participation across top coins usually signals market‑wide flows rather than a single token headline. (Yahoo Finance)
Options markets can hint at perceived support zones and where hedging demand is concentrated. (CryptoNews / Derive)
To judge durability, watch multi‑day stability and whether defensive hedging intensity cools.

Total crypto market cap (original visual). Yahoo Finance reported $2.72T and +2.5% (Feb 3, 2026).

BTC intraday range (original visual) as a proxy for overall crypto volatility today.

What’s happening in crypto today

After several down sessions, today’s move looks like a classic relief rally. Yahoo Finance described the market as up about 2.5% in 24 hours to roughly $2.72 trillion, with most top coins in the green. Broad breadth matters: when majors rise together, it usually points to flows and positioning rather than one isolated narrative.

Crypto can rally even on a day with mixed headlines because the market is extremely sensitive to forced selling dynamics. When forced selling slows, price can mean‑revert quickly.

The main drivers behind an “up” day

1) Positioning reset: when a prior selloff clears leveraged longs, liquidation risk drops and the market can bounce. 2) Short covering: once price stops falling, shorts can take profit, creating mechanical buying. 3) Volatility re‑pricing: market makers hedge differently when implied volatility spikes, which can change spot demand in the short run.

What options markets are signaling

CryptoNews cited Derive founder Nick Forster describing how options flow can “define potential downside boundaries.” In its Feb 3, 2026 update, Forster said: “Options markets are beginning to define potential downside boundaries,” and pointed to open‑interest concentration around the $70,000–$75,000 zone as a key area of market focus.

Even on a green day, active downside hedging implies traders still expect turbulence. Relief rallies can happen while protection demand stays elevated — which often makes the rally fragile.

How to tell if this is more than a bounce

Look for three confirmations: (1) follow‑through into a second green day with stable volume, (2) reduced defensive positioning (less aggressive put buying, normalizing volatility term structure), and (3) spot‑led strength rather than purely leverage-driven pops.

If these don’t show up, “up today” may simply mean the market paused after an overshoot, not that a fresh trend has begun.