Crypto booked profits amid general euphoria

Market Picture

The Crypto market cap has fallen 1.7% in the last 24 hours to $3.29 trillion, despite continued positive traction in the equity market. The strengthening dollar on news of tariffs has been a natural drag on cryptos. This is doubly true due to Bitcoin’s proximity to the highs, reinforcing the pull for short-term profit taking after rallying in just over a month.

The sentiment index is stuck at 70 for a fourth day, indicating investors continued healthy greed despite the intraday pullback.

Bitcoin showed its unpredictable nature on Monday, dropping to $100.5k at one point, contrary to the impressive rally in other markets. But it was clearly profit taking followed by buying that brought the price back to $102.7k. With the positivity remaining, it is worth paying attention to the price dynamics near $105k. Will we see an acceleration or a new failure? The answer will allow for the prediction of the dynamics of the next days.

News Background

According to CoinShares, global investments in crypto funds rose by $882 million last week, with significant inflows for the third week in a row. Bitcoin investments increased by $867 million, Ethereum by $1.5 million, XRP by $1.4 million, and Sui by $12 million. Investments in Solana decreased by $3.4 million.

Coinshares suggests that the growth of investments was due to a combination of factors: the global growth of the M2 money supply, risks of stagflation in the US, and the approval of bitcoin as a strategic reserve asset by several US states.

HTX Research believes that Bitcoin’s current growth is being fuelled by institutional investors, including Abu Dhabi’s sovereign wealth fund and BlackRock’s increasing position in the BTC-ETF.

Presto Research noted that Bitcoin’s dominance has reached levels last seen before the 2021 bull market, and capital is starting to flow into altcoins.

Nakamoto Holdings will be the first publicly traded conglomerate to integrate cryptocurrency into traditional financial structures. It aims to raise $710 million to create a Bitcoin reserve.

Options on Solana (SOL) recorded large call option purchases with a 27 June maturity and a $200 strike, Amberdata notes. If SOL crosses the $200 mark, volatility may increase sharply.

The FxPro Analyst Team