Bitcoin Surges 10% to $110,000 on Global Liquidity Boost

On July 3, Bitcoin's price surged to a three-week high, surpassing $110,000. This recovery was driven by global money supply growth, which reached a new all-time high of over $55 trillion. The market's positive sentiment was further bolstered by the performance of Ethereum and other altcoins, which showed signs of life following Bitcoin's surge.

BTC Markets crypto analyst attributed the market growth to macroeconomic liquidity, noting that while such funds do not always lead to immediate price movements, they eventually find their way into risky assets like cryptocurrencies. The analyst believes that a sustained catalyst, such as a clearer understanding of future interest rates by the Federal Reserve or further investment in ETFs, is needed for a true breakout to all-time highs. Institutional investment has been a key driver of this rise, and continued investment is crucial for a decisive breakthrough.

On July 1, spot Bitcoin ETFs recorded outflows for the first time in 15 days, which may have indicated investor doubts. However, the next day, July 2, the chart of total inflows into exchange-traded funds reached a new all-time high, pulling Bitcoin’s price higher. This suggests that despite temporary outflows, investor sentiment remains positive and continues to drive the market.

Several factors contributed to the possible growth of Bitcoin. These include U.S. President's praise for a new trade agreement with Vietnam, which opened market access for U.S. manufacturers. Additionally, Ripple's application for a federal banking license and renewed hopes for a Fed rate cut after a series of mild statements from U.S. central bank officials also played a role. Given Bitcoin’s solid breakout from its recent sideways range, analysts are becoming more confident that a new all-time high is imminent.

Market researcher noted a rare phenomenon: Bitcoin volatility recently reached its lowest levels since 2023. Historically, every time volatility reached these levels, a massive spike in volatility followed within five weeks. A technical analysis specialist drew attention to the bullish crossover of the MACD indicator on the daily chart, considering this a strong momentum signal. If the breakout is successful, an exit to the $137,000 level is possible.

Altcoins are emerging from the shadows as Ethereum accelerates. Ethereum and other altcoins have shown signs of life following Bitcoin, with the price of ETH adding more than 8% over the last 24 hours, breaking above the $2,600 mark. The head of research at Grayscale expects new highs for many tokens in the second half of the year, despite current asset valuations within recent ranges. Recent crypto-ETP endorsements could boost investor confidence that capital from traditional finance will start flowing into altcoins as well. The growing regulatory clarity in the U.S. is likely to attract more users and capital to the crypto ecosystem, with Bitcoin acting as a backseat passenger while altcoins lead the market.

CryptoQuant expert is positive about Ethereum, noting that accumulation addresses that meet strict criteria have set a new historical record. As of June 30, they held approximately 22.75 million ETH, up 35.97% for the month. The average purchase price as of July 1 was $2,114.70. At Ethereum’s current price of around $2,600, these addresses are up over 23%. A new all-time high in liquid staking volume at 35.56 million ETH was also observed, indicating that the majority of accumulation addresses belong to institutional investors, ETFs, and large holders who are profiting from liquid staking as they await further price appreciation.