Bitcoin (BTC) has reclaimed its bullish momentum after a brief decline to $105,100 on Wednesday. The largest cryptocurrency by market capitalization is currently trading around $107,665, registering a near 2% gain on the day.
Despite overall subdued market sentiment this week, with lower trading volumes and volatility, leading altcoins Ethereum (ETH) and Ripple (XRP) are showing signs of resuming their uptrend and preserving their July gains.
"Markets have entered a lull, with volumes hitting 9-month lows and volatility falling to 21-month lows. While July was set to be active, this might signal a summer slowdown," noted K33 Research in a recent report.
Market Overview: SEC Greenlights New Crypto ETFs
The US Securities and Exchange Commission (SEC) has approved Grayscale's proposal to convert its Digital Large Cap Fund, comprising five cryptocurrencies—Bitcoin, Ethereum, XRP, Solana (SOL), and Cardano (ADA)—into an Exchange Traded Fund (ETF).
Grayscale intends for its crypto ETF to provide investors with access to the weighted price of the underlying assets.
In a related development, the SEC is considering streamlining the listing process for crypto ETFs, aiming to reduce the time and complexity required to bring new products to market.
Bloomberg analysts Eric Balchunas and James Seyffart have revised the approval odds for various spot ETFs—including those for XRP, SOL, and Litecoin (LTC)—to 95% by the end of the year.
Data Focus: Bitcoin Spot ETFs Break Inflow Streak
Bitcoin spot ETFs broke a 15-day streak of daily net inflows on Tuesday, with outflows of approximately $342 million. None of the 12 currently approved spot ETFs registered inflows, with Fidelity's FBTC leading the outflows at nearly $173 million.
Conversely, Ethereum spot ETFs continued their positive trend with a net inflow of around $41 million over three consecutive days of bullish activity. The cumulative net inflows for these ETFs now total $4.25 billion, with net assets standing at $9.95 billion.
Interest in Ethereum appears steady during the ongoing EthCC conference in France. This event is Europe's largest annual Ethereum gathering focused on community and technology.
According to the official event website, this year's conference attracted over 6,400 attendees across its four-day duration, featuring more than 500 speakers.
Today's Chart: Bitcoin Aims for New Highs
Bitcoin's price reversed course on Wednesday, paving the way for a breakthrough above the $107,000 mark. This recovery shows signs of continuation, supported by an upward-trending Relative Strength Index (RSI) and a bullish Money Flow Index (MFI).
Traders should watch for a daily close above $107,000 to validate the strength of the uptrend. A decisive break above $108,000 could boost risk appetite, potentially pushing prices toward the $110,530 high tested on June 9th.
While the recovery above $107,000 is notable, traders should proceed with caution and temper their bullish expectations, as most investors have now returned to a profitable position.
"After climbing back above $107,000, the vast majority of Bitcoin investors are now holding unrealized profits. Overall, investors are sitting on unrealized gains totaling $1.2 trillion," Glassnode stated in a report released Tuesday.
In case of a reversal, key support levels to watch include the $105,100 level tested Wednesday, the 50-day Exponential Moving Average (EMA) at $104,306, and the 100-day EMA at $100,570.
Altcoin Update: Ethereum and XRP Poised for Further Gains
Ethereum formed a green candlestick on the daily chart after bouncing from support near the 100-day EMA at approximately $2,381. The largest smart contract token by market cap is currently trading around $2,449, up nearly 2% on the day. This intraday gain can be attributed to improved market sentiment, with the MFI indicator approaching the midline.
The MFI is a tool that tracks the volume of money flowing into Ethereum, serving as a measure of demand levels for ETH and confirming trend direction. Additionally, the RSI is pointing upward near the midline, suggesting that bullish momentum could resume shortly.
A breakout above the immediate resistance at the 200-day EMA of $2,468 could confirm the bullish trend. If bulls sustain gains above this level, an 18% rally toward the June peak of $2,882 becomes highly probable.
As for XRP, sideways movement has been the dominant theme. However, bulls are gaining the upper hand, with daily gains exceeding 0.5%. XRP is currently trading around $2.18, with bulls attempting to break through the key resistance near $2.20, emphasized by the 50-day EMA. The 100-day EMA sits just above this level at $2.22.
The MFI indicator maintains a bullish outlook near the midline. Further movement toward overbought territory could boost risk appetite and solidify the upward trend toward June's high of $2.34 and May's peak of $2.65.
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Frequently Asked Questions
How do new token listings affect cryptocurrency prices?
New token listings typically increase demand and adoption among market participants. Listings on major crypto exchanges deepen an asset's liquidity and add new participants to its network. This development is generally considered bullish for digital assets.
What market impact do exchange hacks have?
Hacks occur when attackers exploit vulnerabilities to capture large amounts of assets from exchange hot wallets or DeFi bridges. The perpetrators typically move these tokens off the platform to eventually sell or swap them for other cryptocurrencies or stablecoins. These events often trigger widespread panic and significant selling pressure.
How do Federal Reserve interest rate decisions influence crypto markets?
Macroeconomic events like Fed rate decisions primarily affect crypto assets through their direct impact on the US Dollar. Rising interest rates typically negatively impact Bitcoin and altcoin prices, and vice versa. If the Dollar Index weakens, risk assets and associated trading leverage become cheaper, often pushing cryptocurrency prices higher.
Why is the Bitcoin halving considered a bullish event?
The halving is generally viewed positively because it reduces the block reward miners receive, effectively limiting Bitcoin's new supply. If demand remains constant or increases while supply diminishes, the asset's price typically climbs.
What technical indicators are most useful for crypto traders?
Popular indicators include the Relative Strength Index (RSI) for identifying overbought/oversold conditions, Moving Averages (like EMA) for trend direction, and the Money Flow Index (MFI) for measuring buying and selling pressure. These tools help traders identify potential entry and exit points.
How can investors stay informed about regulatory developments?
Following official announcements from regulatory bodies like the SEC, monitoring reputable financial news sources, and tracking analysis from established crypto research firms provide valuable insights into the evolving regulatory landscape. 👉 Get advanced market insights