Bitcoin has once again breached the $110,000 mark, riding the coattails of a robust altcoin surge that has animated the crypto markets in recent days. As of late Tuesday, Bitcoin was trading just above this pivotal level, reflecting a modest 0.9% increase over the past day. Meanwhile, the CoinDesk 20 index—which tracks the performance of the top 20 cryptocurrencies, excluding stablecoins, exchange coins, and memecoins—has climbed 3.3% thanks to notable gains by ether (ETH), solana (SOL), and chainlink (LINK), each rising between 5% and 7%.
Altcoins Lead the Charge
While Bitcoin’s ascent is notable, the real stars of the rally are uniswap (UNI) and aave (AAVE), which have witnessed remarkable surges of 24% and 13%, respectively. These gains come in the wake of favorable comments on decentralized finance (DeFi) by SEC Chair Paul Atkins earlier this week, injecting optimism into the DeFi sector. However, the broader equity market remains largely unaffected, with crypto-related stocks showing little movement. An exception is Semler Scientific (SMLR), which saw its shares tumble another 10%, now trading below the value of the Bitcoin on its balance sheet—a stark reminder of the volatility that defines this space.
Despite recent gains, the sentiment across crypto markets remains cautious. “Funding rates and other leverage proxies point toward a steadily cautious sentiment in the market,” Vetle Lunde, head of research at K33 Research, commented in a Tuesday report. He observed that the recent market environment, characterized by negative funding rates on Binance’s BTC perpetual swaps, is usually indicative of local market bottoms rather than peaks. “Bitcoin does not usually peak in environments with negative funding rates,” Lunde noted, suggesting that these conditions might precede further rallies instead of corrections. For more on Bitcoin’s potential price movements, see Bitcoin traders now see $107K retest before new all-time highs.
Skepticism Amid Optimism
Yet, not everyone is convinced that Bitcoin’s current rally signifies a sustainable breakout. Kirill Kretov, senior automation expert at CoinPanel, remains skeptical. “Is this a true breakout that will continue? In my view, probably not,” he remarked. According to Kretov, the market is still navigating a familiar volatility cycle—where rallies are often trailed by sharp declines triggered by unforeseen narratives or announcements. For seasoned traders, the current climate presents opportunities to capitalize on these swings, but for others, it might signal a time to tread carefully. This sentiment is echoed in Crypto Daybook Americas: BTC Holds Below $110K as QCP Sees ‘Tight Range’; Altcoins Outperform, which discusses the tight trading range Bitcoin is experiencing.
As of now, Bitcoin’s technical chart shows potential support levels at $105,000 and $100,000, areas that could be tested should selling pressure resurface. Meanwhile, flows into leveraged Bitcoin ETFs tell a similar story of hesitancy. The ProShares 2x Bitcoin ETF (BITX), for instance, holds significantly less Bitcoin exposure compared to its peak in December 2023, with inflows remaining sluggish.
The Road Ahead
Looking ahead, the crypto market’s trajectory remains uncertain. The cautious sentiment—evidenced by muted ETF inflows and negative funding rates—has left room for a “healthy rally,” according to analysts like Lunde. However, the path forward will likely hinge on a complex interplay of market dynamics, regulatory developments, and investor sentiment.
As Bitcoin and altcoins continue their dance around critical price levels, traders and investors alike are left pondering the sustainability of this rally. Will this be another chapter in the enduring saga of crypto volatility, or are we on the cusp of a longer-term upward trend? With the ever-evolving landscape of cryptocurrencies, only time will tell.
Source
This article is based on: Bitcoin Rises to $110K as Altcoins Rally; Traders Skeptical of Breakout
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
