Key facts
- Bitcoin traded around $65,500, with analysts flagging $65,700 as near-term resistance and $64,000 as key support.
- Ether rose over 3% to $1,922, outperforming Bitcoin due to institutional accumulation.
- US spot Bitcoin ETFs have experienced five consecutive days of net inflows.
- Easing geopolitical tensions, particularly regarding Iran, have contributed to a calmer market backdrop.
- Upcoming PCE inflation and Q2 GDP data, along with corporate earnings from major tech firms, are key factors to watch.
Ether has outperformed Bitcoin, with both cryptocurrencies seeing gains as institutional accumulation trends strengthen and geopolitical tensions ease. Bitcoin traded near $65,500, while Ether reached $1,922. The market is also influenced by the Federal Reserve's upcoming policy decisions and economic data releases.
Analysts suggest that Bitcoin is likely to remain range-bound in the near term. Factors contributing to this include retreating oil prices following a pause in U.S.-Iran hostilities, and the 10-year Treasury yield approaching 4.7%, which is contributing to tightening financial conditions. The Federal Reserve may also be waiting for this week's PCE inflation and second-quarter GDP data before making any policy moves.
Corporate earnings from major technology companies like Apple, Microsoft, Meta, and Amazon are also seen as significant market movers. Their guidance on free cash flow and AI spending could impact Treasury yields and the Nasdaq, indirectly affecting liquidity in the crypto market. The composition of ETF flows, in addition to headline numbers, is also considered important.
Bitcoin's recent rally to a one-month high of $65,700 was partly attributed to reports of Iran seeking to revive ceasefire talks, which eased tensions and lowered oil prices. Declining exchange reserves suggest a potential short squeeze, and capital rotating out of technology stocks has boosted crypto sentiment. Resistance for Bitcoin is seen at $67,000, with support at $64,000.
US spot Bitcoin ETFs have recorded inflows for five consecutive sessions, totaling approximately $610.5 million. However, subdued spot market activity indicates limited investor conviction. The upcoming Federal Reserve meeting is a key catalyst, with markets pricing in low odds of a July rate hike. Ethereum is testing resistance near $1,910 to $1,945, with $1,875 as key support.
The Federal Reserve's Beige Book indicated that price growth remained stable or slowed in all districts, potentially removing the chance of a July rate hike. Odds of a September rate increase have also dipped. The two-year U.S. Treasury yield has fallen, and Bitcoin continues to trade in a tight range around the $65,000 level.
President Trump commented on the importance of data centers, which appeared to boost related stocks. Market maker Wintermute cautioned that Bitcoin's rally faces a key technical hurdle at $65,000, with profit-taking already emerging. Fed Chairman Kevin Warsh acknowledged that AI-related demand could cause price pressures but suggested it might not be inflationary, expecting a supply response that would be disinflationary.