Bitcoin Surges 4.5% to $109,800 on ETF Inflows and Regulatory Developments

Bitcoin prices surged on July 2, reaching their highest value in approximately three weeks. The digital currency's rally was driven by various bullish developments that positively impacted market sentiment. At around 1:30 p.m. EST, Bitcoin surpassed $109,800, marking a roughly 4.5% increase for the day after previously dipping to nearly $105,000.

Analysts attributed the gains to several factors, including the market's response to recent geopolitical and regulatory headlines, growing confidence in the Federal Reserve's trajectory, and consistent demand for exchange-traded funds (ETFs). Doug Colkitt, a founding contributor at Fogo, highlighted that Bitcoin benefits from improving sentiment and institutional momentum. Joe DiPasquale, CEO of BitBull Capital, noted that the recent price surge was driven by renewed ETF inflows, easing macroeconomic concerns, and traders capitalizing on Bitcoin's momentum after it reclaimed key levels. Mike Cahill, CEO of Douro Labs, emphasized that Bitcoin's bounce reflected a broader shift back into risk assets following a week of macroeconomic uncertainty, with steady ETF inflows and positive regulatory signals encouraging investors to re-enter the digital asset market.

Several analysts pointed to significant developments in crypto-related funds as bullish factors impacting Bitcoin. Earlier in the week, the U.S. Securities and Exchange Commission approved the conversion of Grayscale's Digital Large Cap Fund into an ETF, using the CoinDesk 5 index as its benchmark. This approval was seen as a meaningful milestone, potentially signaling additional filings from other providers and greenlighting spot ETFs for other cryptocurrencies. The launch of the REX-Osprey™ Solana + Staking ETF, the first such fund in the U.S. to offer exposure to staking rewards, also generated significant interest, with millions of dollars' worth of trading volume in its first 20 minutes. These developments underscored the market's excitement about crypto progress under the new administration and the beginning of the third quarter of 2025.

Bitcoin's approach to the $110,000 threshold is fueled by stronger sentiment and risk-off bets, reflecting its growing acceptance as a store of value and a response to broader economic uncertainties and geopolitical risks. The global risk sentiment has been mixed, with optimism stemming from stronger-than-expected US economic data. May’s US JOLTS job openings surged to 4.6 per cent, signaling robust labor market demand, while the ISM Manufacturing index ticked up to 49.0, hinting at a stabilization in industrial activity despite remaining below the expansion threshold of 50. These figures suggest an economy that is holding its own, defying some of the gloomier forecasts that have lingered in recent months. This resilience is a reminder that the US economy often finds ways to surprise on the upside, even amid uncertainty.

However, this positivity is tempered by caution. Fed Chair Jerome Powell’s latest remarks reinforce a “wait-and-see” approach, a stance that keeps markets guessing about the Federal Reserve’s next move. His acknowledgment that a rate cut in July isn’t off the table adds a layer of intrigue, suggesting flexibility but no firm commitment. This uncertainty has led investors to seek out safe-haven assets, with gold rallying 1.1 per cent to $3,339 per ounce, a clear sign of its enduring allure as a safe-haven asset when sentiment wavers.

In the cryptocurrency realm, Bitcoin is stealing headlines once again. Institutional interest from companies like DDC Enterprise, a publicly traded food company, has secured $528 million in fresh funding and plans to acquire 5,000 BTC over the next three years. This isn’t pocket change; it’s a bold bet on Bitcoin as a treasury asset, signaling that institutional adoption is gaining steam. It’s a vote of confidence in crypto’s staying power, even as traditional markets grapple with their own dramas. Companies like DDC are betting that Bitcoin can hedge against inflation or currency weakening, a narrative that holds water in today’s climate.

However, the price action tells a more cautious tale. Bitcoin pulled back to $105,250 on Tuesday after failing to breach $109,000 over the weekend, and selling picked up pace, raising the specter of a drop to $104,000. We might be at a local top or entering consolidation, given the choppy trading. On the daily BTC/USDT chart, Bitcoin’s caught between a downtrend line and its moving averages. The upsloping averages tilt slightly bullish, suggesting that buyers aren’t out of the game, but the RSI, hovering near neutral, shows that momentum has stalled. If the price cracks below those averages and holds there, we’re looking at a slide to $104,500, maybe even $100,000, keeping it trapped in a bearish descending triangle. But if it bounces off the averages and punches above the downtrend line, that bearish setup collapses, and we could see a run toward the inverse head-and-shoulders neckline, potentially a bullish breakout.

The four-hour chart sharpens the focus: Bitcoin has slipped below the moving averages, a sign that short-term traders are cashing out. The $104,500 level is the line in the sand; buyers will fight tooth and nail to hold it, because a break could send it tumbling to $100,000. Psychologically, that round number looms large, and I’d wager it’s where dip-buyers might step in. Bitcoin’s at a crossroads. The institutional interest from DDC is a long-term tailwind, but near-term selling pressure could test those lower supports. If it holds $104,500, I’d see it as a base for another push; if it folds, $100,000 feels like a natural floor before sentiment shifts.

The cryptocurrency trend extends beyond individual investors to corporate boardrooms, particularly in London. At least nine London-listed companies, ranging from web design firms to gold miners, have recently announced plans to buy Bitcoin or have already done so, aiming to boost their share prices. This strategy echoes the success of Japan’s Metaplanet, Germany’s Bitcoin Group, and US-based MicroStrategy, whose valuation skyrocketed nearly 400 per cent since adopting a Bitcoin-centric approach in August 2020. For London’s equity market, which has historically been light on digital asset exposure and constrained by regulatory limits on crypto-linked products, this marks a significant shift in sentiment. Companies are increasingly viewing Bitcoin as a treasury asset, a hedge against inflation, and a means to attract investor interest.