After experiencing downward pressure earlier in the year and into early April, the digital currency market exhibited notable signs of recovery and improved sentiment during the latter half of the observed period. This positive shift appeared linked to a combination of crypto-specific factors, such as renewed ETF inflows, and favorable developments in the macroeconomic environment.

Bitcoin led the recovery, rebounding significantly from lows around $74,000 reported in early April. By late April, it had climbed back above key psychological and technical levels, trading above $93,000 and reaching towards $95,000. Analysts noted the importance of holding support levels like $93,500 to sustain the recovery. The positive momentum fueled speculation about a potential retest of the $100,000 mark or even previous all-time highs if the trend continued. Bitcoin also posted its strongest weekly gain since the previous November election period.

Ethereum also participated in the recovery, reclaiming the $1,800 price level. This move coincided with the positive news regarding the first weekly inflows into US spot Ether ETFs since February. While ETH had underperformed Bitcoin earlier in the year, it registered substantial gains during the rally, with one report noting a 13.27% jump alongside Bitcoin's rise on positive macro news. Other reports also highlighted ETH gains during this period.

Several altcoins also experienced positive price movements. Solana (SOL) saw solid gains, rising alongside Bitcoin and Ethereum during the market rally. The SUI token reportedly rallied 20% around April 25. AI-related tokens like TAO, FET, and AI16Z also surged during this time.

Market sentiment indicators reflected the improving price action. The Crypto Fear & Greed Index, which had registered levels indicating "Fear" or even "Extreme Fear" earlier in April, moved significantly higher towards "Neutral" or "Greed" territory as prices rebounded. This shift suggested investors were moving past the panic selling phase and potentially laying the groundwork for further optimism.

A key driver behind the broad market rally in late April appeared to be growing hopes for a de-escalation in US-China trade tensions. Reports emerged from a private JP Morgan event suggesting US Treasury Secretary Bessent expressed optimism about a potential easing, describing the prior situation as "unsustainable". President Trump also adopted a less confrontational tone, suggesting tariffs on China might come down substantially. This news triggered a synchronized rally across both cryptocurrency markets and traditional US equity markets, highlighting the sensitivity of digital assets to macroeconomic developments. Additionally, President Trump's statement clarifying he had no intention of firing Federal Reserve Chair Jerome Powell likely contributed to calming market nerves.

The turnaround in sentiment and price was strongly supported by the renewed inflows into Bitcoin and Ethereum ETFs, confirming returning demand from institutional and retail investors via these regulated vehicles.