Bitcoin surged to an impressive $122,300 during the Wednesday U.S. session, reaching its highest level in four weeks and tantalizingly close to its all-time high. Yet, as with previous attempts, strong selling pressure pushed the price back below $120,000. Meanwhile, Ethereum’s ether lingered just 3% shy of its 2021 zenith, trading at $4,750. This resurgence in crypto markets isn’t occurring in a vacuum, as broader capital markets also show signs of buoyancy, buoyed by softer inflation signals and speculation about Federal Reserve easing. For more insights on Ethereum’s performance, see our recent article on Ethereum Explodes to 2021 Peaks, Bitcoin Eyes ATH.
Bitcoin’s Rollercoaster and Ether’s Ascent
Bitcoin’s recent rally has captivated market watchers, with the digital currency making yet another attempt at surpassing its previous records. Despite briefly touching $123,000 on July 14, the cryptocurrency has repeatedly encountered resistance at these levels. Analysts suggest that this persistent selling pressure hints at profit-taking by investors who remain cautious amid the market’s volatility.
Ether, on the other hand, has been outperforming Bitcoin. With a 4.5% gain in the past 24 hours compared to Bitcoin’s 2.3%, Ether’s bullish momentum is noteworthy. This outperformance reflects growing confidence in Ethereum’s ecosystem, especially following its successful transition to proof-of-stake last year. As investors anticipate further network upgrades and increased utility, Ether’s allure continues to grow.
Altcoins Join the Rally
The crypto market’s upward momentum isn’t limited to Bitcoin and Ether. Major altcoins, including Solana’s SOL and tokens like Uniswap’s UNI and Hyperliquid’s HYPE, have also experienced substantial gains. SOL has climbed over $200, while UNI and HYPE have both rallied by 5%-6%. This broader rally suggests a renewed interest in altcoins, often seen as a barometer for risk appetite in the crypto space.
Joel Kruger, a market strategist at LMAX Group, notes that the supportive momentum from equity markets is augmenting the crypto rally. “The S&P 500 and Nasdaq are near all-time highs, buoyed by softer inflation signals and speculation of Fed easing,” Kruger explained. This favorable macro environment is providing a tailwind for risk assets, including cryptocurrencies. For further analysis on Bitcoin’s potential price targets, refer to Bitcoin Traders Eye $135K, Ether $4.8K in Crosshairs.
Macro Backdrop: A Catalyst for Growth?
The current economic landscape appears ripe for a sustained rally in risk assets. According to a report by 10x Research, credit spreads are tightening, and loan growth is on the upswing—conditions that often precede market rallies. The report highlights that while the Federal Reserve has been hesitant to cut interest rates, a pivot is expected, which could spur a rapid influx of capital into higher-beta risk assets.
However, the market hasn’t fully priced in this potential shift. “Bitcoin and equities are both responding early, but the market still isn’t fully pricing what’s coming,” the report suggests. With over 90% of market participants anticipating a 25 basis point rate cut in the upcoming September meeting, the pressure is mounting on policymakers to consider more aggressive easing measures.
Looking Ahead: Can the Rally Sustain?
As we look towards the latter part of the year, the key question remains: Can this rally be sustained? The crypto market is notoriously volatile, and while the current conditions are favorable, uncertainties linger. The potential for macroeconomic shifts, regulatory changes, and technological advancements could all impact the trajectory of these digital assets.
Investors should remain vigilant, keeping an eye on both macro trends and developments within individual blockchain ecosystems. The interplay between traditional financial markets and the crypto space is complex, and while optimism is palpable, it is tempered with caution.
In the coming months, as the Federal Reserve’s actions unfold and crypto networks continue to evolve, the market could witness significant shifts. Whether Bitcoin will break new ground or Ether will finally surpass its previous high, only time will tell. But one thing is certain: the cryptocurrency market is as dynamic as ever, and those who navigate its waters must be prepared for both opportunities and challenges.
Source
This article is based on: Bitcoin Tops $122K, Eyes Fresh Record, With Ether Just 3% From 2021 ATH
Further Reading
Deepen your understanding with these related articles:
- Bitcoin, Ethereum Rise as US Inflation Cools to 2.7% in July
- Bitcoin Price Closes in on All-Time High as Traders Await Key Inflation Data
- Ether’s Rally Pulls Bitcoin Along: Crypto Daybook Americas
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.
