The crypto market is seeing positive growth due to signals from US regulators, stable international trade conditions, and the return of big investors. Recently, Bitcoin hit a value of $110,000 after briefly dropping to $100,000 last week. The cryptocurrency started the week strong, moving towards $110,000 and has been growing steadily since April.
A major reason for this growth is the renewed interest from large investors. On Monday, spot Bitcoin ETFs received $386 million, mainly from Fidelity Wise (LON:) Origin Bitcoin Fund (NYSE:), showing that market confidence is returning after recent outflows.
Another reason for the price increase is the closure of short positions in futures markets. Closing about $38 million worth of short positions helped push prices up, and a large purchase of 1,045 BTC (around $110 million) indicates that investor interest is on the rise.
Globally, the ongoing trade talks between the US and China in London are gaining attention. Their willingness to cooperate in key areas like rare earth elements and semiconductors is boosting global investor confidence and encouraging interest in alternative assets like Bitcoin. Additionally, the market’s anticipation of upcoming US inflation data is causing a shift towards riskier assets.
In the US, Securities and Exchange Commission (SEC) Chairman Paul Atkins’ supportive stance on crypto is being well-received by the market. His defense of personal control over crypto assets and his suggestion for an “innovation exemption” for DeFi platforms are creating optimism that regulatory pressure might ease. As a result, Bitcoin is gaining strength not only from technical factors but also from political and institutional support.
Bitcoin Approaching New ATHs
In the last week of May and the first week of June, Bitcoin experienced a dip, falling below $103,000. However, it quickly rebounded as buyers returned around the $100,000 mark.
Since May, Bitcoin has been in a consolidation phase, with ongoing volatility. As of this week, it has maintained the positive momentum seen over the past three months and is approaching the $111,000 mark, which is close to a record level.
Bitcoin might reach a new record this week, depending on current market conditions. According to technical indicators like the Stochastic RSI, the upward trend is likely to continue.
Bitcoin’s price is above its short and medium-term moving averages on the daily chart, suggesting it is in a positive position. If Bitcoin can remain in the $111,000 to $114,000 range and buyers manage to overcome any selling pressure, the next target levels could be $119,000 and then $125,000.
However, if Bitcoin faces strong resistance around $111,000, there might be an increase in profit-taking, potentially causing the price to drop back to around $105,000. If Bitcoin manages to find support between $103,000 and $105,000, a stronger upward trend could develop.
Current macroeconomic factors and market risk appetite might continue to support Bitcoin’s rise, but it’s important to keep an eye on the support zone during any potential pullbacks.
Ethereum Finds Strength from Staking Transactions, Institutional Interest
is one of the assets directly benefiting from Bitcoin’s rise. After finding support around the $2,430 mark last week, ETH saw an increase of over 10% and reached the upper limit of its trading range.
For the past month, Ethereum has been fluctuating between $2,430 and $2,730, and it continues in this range thanks to strong institutional demand. Interest in Ethereum ETFs is strong, and on-chain data shows a significant increase in interest, with the number of weekly active wallets hitting an all-time high of 17.4 million.
This indicates that both individual and institutional buyers are becoming more active on the network. Additionally, a record 34.8 million ETH is locked up, suggesting that investors are choosing to stake rather than sell. This suggests the market may be entering another accumulation phase.
SEC Chairman Atkins’ recent statements at the DeFi meeting on June 9 clarified that staking activities won’t be classified as securities, a key legal development for Ethereum. This may speed up the approval process for ETFs with staking features.
For instance, BlackRock’s iShares Ethereum Trust has been steadily accumulating ETH for 23 consecutive trading days without any outflows, suggesting a strong base for ETH at its current levels over the medium to long term.
Can Ethereum Breach $2,700 Resistance?
Although the positive winds continue to blow for Ethereum, which leads the altcoin market, the cryptocurrency has not yet found enough support to overcome its resistance in the $ 2,700 region.
After Ethereum rose to the $2,730 mark again earlier this week, it is seen that purchases have weakened at this point. However, the technical outlook continues to generate positive signals at the point of breaking this resistance level. According to the current outlook, a daily close above $2,730 or volume buying could quickly move ETH to the $3,000 region. Then the next target will be followed as the $ 3,400 area.
In the lower region, if $ 2,700 cannot be passed, we may see a new swing towards $ 2,430. On this path, the range of $ 2,540-2,580 may appear as an intermediate support. As a result, Ethereum is likely to move quickly towards the exit direction from the $ 2,400-2,700 range.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.
