Market Overview
The crypto market capitalisation has been gradually rising, reaching the $2.24T mark and recouping a significant portion of the losses incurred last Thursday and Friday. The recovery is being driven by a slight de-escalation between the US and Iran, which is fuelling risk appetite and leading to a series of higher local lows. Among the top altcoins over the past seven days, leading coins have shown gains ranging from Uniswap (+13%), Aave (+13.2%), and Aptos (+7.5%) to declines in Zcash (- 4.8%), Cosmos (-4.1%) and NEAR Protocol (-2.6%).
On Friday, Bitcoin fell below the uptrend’s support line in place since the start of the month, hitting a local low of $63.6K. This was an attempt by the bears to push the price down towards the 50-day moving average. However, ahead of the start of active trading in Europe on Monday, the price once again exceeded $65K, with attempts to maintain an upward trend while remaining above a significant medium-term trend line.
Ethereum outperformed Bitcoin in the recovery, being the first to hit two-month highs, rising above $1,950 and returning to test key support levels. This outperformance points to growing optimism surrounding cryptocurrencies, suggesting the market is shifting into a ‘buy on the dip’ mode. Although the risk of a further crash cannot be entirely ruled out, it appears that the cryptocurrency market bottomed out in June, a view supported by the shift in sentiment towards Ethereum, which is now in its fifth week of gains.
News Background
The Bitcoin futures market is showing the first signs of improving sentiment. Funding rates on perpetual contracts on Binance have returned to positive territory after a long period in negative territory, according to WIN Japan.
Falling prices, debt obligations and challenging market conditions are forcing public companies to sell Bitcoin en masse. According to VanEck, dozens of organisations have fully or partially liquidated their crypto reserves.
Ethereum is showing on-chain signals typical of market lows. However, the definitive formation of a bottom has not yet been confirmed, CryptoQuant notes. Only two of the five ETH metrics have reached the levels that they did during previous market reversals.
Bitcoin could lose its status as the largest cryptocurrency if the network’s governance mechanisms prove insufficiently flexible to counter the quantum threat promptly, said Cardano founder Charles Hoskinson. According to him, making changes to the BTC blockchain is extremely difficult.
Galaxy Research has lowered the probability of the Clarity Act being passed in 2026 to 30% due to the approaching Senate summer recess in August, as seven Democratic senators believe the latest version of the bill is still not sufficiently developed. A month ago, the probability of the bill being passed stood at 50%.
According to Cryptorank, more than 99 crypto projects across various sectors, including DeFi, SocialFi, asset management and stablecoin issuance, have shut down since the start of the year. This is more than during the bear market of 2022.
The FxPro Analyst Team