The latest report from Binance Research indicates that global risk appetite remains high, with Bitcoin and U.S. stock indicators reaching new record levels.
This move is driven by strong institutional flows, legislative progress in the United States, and expectations of interest rate cuts from the Federal Reserve.
Bitcoin surpasses $118,000, raising the value of the cryptocurrency market to $3.7 trillion.
According to the study, the price of Bitcoin has surpassed $118,000, boosting the value of the entire cryptocurrency sector, which now has a market value of nearly $3.7 trillion. Institutional investments have gained momentum, with cryptocurrency ETFs now managing over $160 billion.
Furthermore, companies are diversifying their reserves using alternative currencies such as XRP and DOGE, in addition to Bitcoin, indicating a shift in corporate policies and the integration of cryptocurrency assets within their institutional financial portfolios. Other important points include political progress in Washington.
The U.S. House of Representatives has launched what is called "Crypto Week" by voting on three bills targeting this sector. This aims to establish the country's position as a global reference in the Web3 field, indicating a shift in the U.S. regulatory approach to blockchain technology.
The overall scenario remains positive, but with risks.
On the economic front, the report highlights continued optimism despite uncertainties surrounding tariffs. President Donald Trump has delayed imposing new tariffs on 14 countries until August 1, which could increase the actual rate of U.S. tariffs.
This scenario, along with expectations of accelerating inflation in the short term, poses a challenge for the Federal Reserve and market resilience. Meanwhile, the second quarter earnings season begins with downward revisions to corporate profit estimates.
This may put pressure on stock markets, which are already trading at high valuations. Nevertheless, overall sentiment remains cautiously optimistic, as the market expects a more flexible stance from the Federal Reserve in 2025.
