Bitcoin Approaches $110K as Ethereum Soars 6% on Rate Cut Optimism
Cryptocurrency Market Sees Gains Amid Positive Economic Signals
Bitcoin and Ethereum Experience Notable Increases
The cryptocurrency market showed positive momentum on Thursday, buoyed by favorable macroeconomic indicators and a shift in investor sentiment. By 1:04 PM IST, Bitcoin had risen by 2.3%, reaching $109,336, while Ethereum surged by 6.3% to $2,601. The overall market capitalization for cryptocurrencies increased by 0.8%, totaling $3.31 trillion, according to CoinMarketCap.
Altcoins Join the Uptrend
A variety of altcoins also participated in the upward trend. Notable performers included XRP, Solana, Dogecoin, and Cardano, which saw price increases ranging from 3% to 9%. Additionally, Tron, Sui, Avalanche, and Chainlink experienced gains of up to 11%.
Market Insights and Predictions
Edul Patel, CEO of Mudrex, commented on the market’s current strength, attributing it to expectations of a potential rate cut in July. He emphasized that Bitcoin must close above $107,720 on a weekly basis to confirm its upward trend, with significant resistance identified at $110,900.
Economic Data Influences Crypto Prices
Recent disappointing payroll data from the U.S. has contributed to the rise in cryptocurrency prices, alongside speculation about monetary easing. Investors are now looking ahead to upcoming jobless claims and non-farm payroll data for further market direction.
Factors Driving Bitcoin’s Recovery
Vikram Subburaj, CEO of Giottus, noted that Bitcoin’s recent rebound was influenced by a trade deal involving Trump and a renewed interest in Solana’s staking ETF. On July 2, spot Bitcoin ETFs recorded inflows of $407 million, reversing previous outflows. Current on-chain metrics suggest there is still potential for further price increases.
Ethereum’s Strong Performance
Riya Sehgal from Delta Exchange highlighted Ethereum’s breakout, noting its rise from $2,375 to over $2,550. She indicated that Ethereum appears to have a stronger market setup compared to Bitcoin, with resistance levels at $2,665 and a target breakout price of $2,800. Despite a lack of significant retail activity, whale accumulation and staking inflows remain robust.
Institutional Interest in Solana
Solana has gained attention following the launch of the REX-Osprey Solana Staking ETF, which attracted $12 million in inflows and recorded $33 million in trading volume, indicating growing institutional interest.
Future Outlook for Bitcoin
According to Avinash Shekhar, Co-Founder of Pi42, Bitcoin reached $109,700, marking its highest point in three weeks, driven by macroeconomic optimism and ETF inflows. He noted that a breakout above the $110,000 mark could signal the next phase of the current bull cycle, although traders are advised to remain cautious of short-term momentum changes.
Disclaimer: The opinions and insights provided by the experts are their own and do not necessarily reflect the views of the Economic Times.
