On July 3, Bitcoin’s price hit a three-week high, crossing $110,000. The recovery came amid global money supply (M2) growth, which reached a new all-time high (ATH) of over $55 trillion. Bitcoin tested $110,000. Ethereum and altcoins gave positive signals. Market Overview In a commentary for The Block, BTC Markets crypto analyst Rachel Lucas attributed the day’s market growth to macroeconomic liquidity: “While it doesn't always lead to immediate price movements, such funds eventually find their way into risky assets like cryptocurrencies with some delay.” Lucas believes the market needs a ”sustained catalyst” for a true breakout to all-time highs. This could be a clearer understanding of future interest rates by the Federal Reserve or a further influx of investment in ETFs. “It is institutional investment that has quietly sustained this rise, and for a decisive breakthrough it must continue,” she said. ETF Flows and Investor Sentiment On July 1, spot Bitcoin ETFs recorded outflows for the first time in 15 days, possibly indicating investor doubts. The next day, July 2, the chart of total inflows into exchange-traded funds reached a new all-time high (ATH), which pulled Bitcoin’s price higher. Possible Growth Factors Among the possible growth factors: U.S. President Donald Trump praised a new trade agreement with Vietnam, opening market access for U.S. manufacturers. Ripple confirmed its application to the U.S. Office of the Comptroller of the Currency for a federal banking license. Renewed hopes for a Fed rate cut after a series of mild statements from U.S. central bank officials. Given Bitcoin’s solid breakout from its recent sideways range, analysts are becoming more confident that a new all-time high is imminent. Analyst Insights Market researcher Jackis noted a rare phenomenon: Bitcoin volatility recently reached its lowest levels since 2023. “Every time we reached these values, a massive spike in volatility followed within five weeks (and sometimes sooner),” Jackis observed. Titan of Crypto, a technical analysis specialist, drew attention to the bullish crossover of the MACD indicator on the daily chart. He considers this a strong momentum signal and noted that Bitcoin is trying to break out of a bullish flag pattern. If the breakout is successful, an exit to the $137,000 level is possible. Altcoins Emerge as Ethereum Accelerates Altcoins are coming out of the shadows, while Ethereum is accelerating. Ethereum and other altcoins have shown signs of life following Bitcoin. The price of ETH added more than 8% over the last 24 hours, breaking above the $2,600 mark. Grayscale’s head of research, Zach Pandl, said in a Decrypt commentary that he 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,” Pandl said. He noted that the growing regulatory clarity in the U.S. is likely to attract more users and capital to the crypto ecosystem. “Bitcoin is like a backseat passenger today, with altcoins leading the market,” Pandl added. Ethereum Accumulation and Staking Trends CryptoQuant expert Carmelo Aleman is positive about Ethereum. According to his data, accumulation addresses that meet strict criteria (do not belong to centralized exchanges, have minimal or zero ETH withdrawals) 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%. Aleman pointed out a new all-time high in liquid staking volume at 35.56 million ETH. This is because 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.
