- The price of Bitcoin rose to $31,300+, its highest level since June 2022.
- Bitcoin’s dominance reached its greatest level since April 2021, reaching 50%.
- Ethereum is still struggling to climb beyond $1,950.
- The Nasdaq Composite has increased by 31..5+%, which is a record high for the first half since 1983.
- The S&P 500 Index (SPX) posted its highest first half since 2019 with a gain of 15.5+%.
- In June, the European Central Bank (ECB) and the Bank of England (BOE) raised rates again.
- Investors are eagerly awaiting US FOMC Meeting Minutes this Wednesday.
The total crypto market capitalization was $1.20 trillion or more, a 1.10 percent decrease from the previous day. Bitcoin’s price has risen to $31,300+, its highest level since June 2022. The spike was fueled by growing optimism surrounding spot bitcoin exchange-traded fund (ETF) applications submitted by powerful Wall Street companies like as BlackRock. On Tuesday night, US stock futures witnessed little action as Wall Street prepared to begin a shorter week following the Fourth of July holiday. Futures on the S&P 500 and Nasdaq 100 fell 0.07% and 0.14%, respectively.
In June, major central banks raised interest rates again. The European Central Bank (ECB) rose by 0.25%, while the Bank of England (BOE) raised by 0.50% after its latest inflation print came in hotter than predicted at 8.7% versus 8.4%.
Rise in Bitcoin Dominance:
The market capitalization of Bitcoin accounts for 52% of the entire cryptocurrency market as of June 29. This is a record high set in April 2021.
As Bitcoin’s dominance level surpassed 50% on Tuesday night, it was at its highest position since April 2021. Major cryptocurrencies are traded in a diverse bag. According to data from CoinMarketCap at the time of publication, BTC has a dominance of 49.51%. The price of bitcoin (BTC) has reached a one-year high this month as a result of an uptick of institutional investing activity, which was highlighted by traditional finance giant BlackRock and other asset management firms filing for a wanted spot bitcoin exchange-traded fund (ETF).
Bitcoin Price Analysis:
The price of Bitcoin has surged to $31,300+, its highest level since June 2022. The bulls are purchasing intraday dips. Buyers will attempt to strengthen their position by driving and maintaining the price above the overhead barrier of $31,000 while remaining above $30,417. If they are successful, the BTC/USDT pair may gain momentum and begin its ascent toward $32,500. The $32,500 threshold may operate as a modest stumbling barrier. To gain an advantage in the short run, sellers must lower the price below $30,417. The BTC may then fall to $28,250.
Concluding Thoughts:
There is a lot going on in the crypto ETF sector. However, it is still unclear whether or not a spot Bitcoin ETF will be permitted. A spot Bitcoin ETF will very certainly benefit crypto ETFs and the whole crypto industry. This month, the Fed maintained its key reference rate. However, it signaled that there will likely be at least two more 0.25% increases later this year as the bank has yet to see clear indicators that inflation will fall to its 2% objective.
The ECB and BOE both said they expect future rate hikes at a recent ECB central banking forum attended by all major global central banks. Despite markets being less concerned about inflation, central bankers’ continuous signaling of rate rises shows that inflation upside risk remains essential. A reacceleration of US inflation in the coming months could surprise markets. Given central banks’ messaging over time, any unexpected, substantial inflation spike will be met by further rate hikes due to market complacency. As markets raise interest rate forecasts, risk assets like bitcoin and equities may fall.
