Bitcoin bought a high position of $122,000 and broke the record on Monday, prompting a broad rally in all of the crypto markets. This is a catch-up, not reversal, as the price is triggered by a large capital inflow to Etfs, the market effects of closing short positions on a large scale, and an increasing positivity regarding policy in Washington. A new sentiment has been created by the new prices that have been set by Bitcoin to the extent that there is a bullish feeling among the traders and other people involved.
As a result of the $3,000 Ethereum mark that was achieved during the week last Friday with a consequential ETF flow of $383 million, Ethereum also joined the race of all and sundry and is moving along the track of the rally. The other cryptocurrencies experienced the same kind of good effects of the day with XRP almost hitting $2.95, marking a growth rate of up to 30% in the last seven days, and Solana returning to the position above $167. Dogecoin experienced a tremendous over 20% jump in price, as a large number of retailers were enthused and were talking about the meme coin again.
The crypto industry is capitalizing on the famous ‘altseason’ movement, which is when the amount of investment in the altcoins becomes enormous as Bitcoin reaches new all-time highs. As long as Bitcoin defends the ground on the $120,000 mark and the world economy remains the same, it is predicted that at least the high-cap altcoins are the ones that are going to continue rising in the next couple of weeks, or so on.
This “Crypto Week” that is taking place within the borders of the US is in Congress, where they are having a set of meetings that are aimed at making the country the global leader in the world of digital assets. This legislative intervention in the market is one of the things that have added more motivation to the market players.
A Research Analyst at Signal Plus, Augustine Fan, was of the opinion that “Crypto prices reaped benefits from a major melt-up, with BTC trading up to the high $118K range and liquidating over $1 billion in short. The market seems to be entering a frothy stage, with Delphi Digital co-founder Anil Lulla stating that most geopolitical crises would need to be priced in”. However, Fan also says that players in the market are likely to turn a bit but not too risky, caused by the growth of mania if seasonal geopolitical features like tariff talks were to experience a total breakdown.
In technical terms, for Bitcoin, it seems like the price of $109,000 has become a good support level. Equally, money flows from traditional assets to cryptocurrencies are further encouraging the bull market participants. Eugene Cheung, the CCO at OSL, in a comment stressed that the prevailing tendency continues to be bullish. We would not be surprised if Bitcoin the market tried to reach for $130K to $150K by the end of the year if current macroenvironmental conditions prevail, he said.
The global trading floors appeared to be a bit fragile from the very beginning. After the news came on Monday that the former President Trump announced a 30% tariff on imports from the EU and Mexico, apart from the already fragile trade situations globally, futures on U.S. and European stock indexes headed south. S&P 500 futures dropped by 0.4%, Europe’s Stoxx 600 futures fell by 0.6%. Apparently, silver hit its highest levels since 2011, indicating the renewed appetite of investors for the hard assets market.
Growing investor interest and fresh inflows into the crypto sector, with virtual assets moving back into focus, and the market gaining more momentum, the upcoming weeks are likely to determine the next phase of the crypto bull market.