and $BNB exceeds 800 dollars as economists expect a decline in the chances of rate cuts in July
The cryptocurrency market is knocking on the door of $4 trillion again, but it does not seem capable of surpassing it.
The total market capitalization reached $3.93 trillion on Wednesday, marking the third attempt in four weeks to break this historical barrier. This comes despite strong risk appetite in stock markets, increased institutional demand for Ethereum, and new news about instant exchange-traded funds across alternative currencies.
Instead, it seems that traders are stuck in a technical stalemate, trading their capital between major currencies while waiting for new news to stimulate new flows.
Alex Ko, Chief Market Analyst at FxPro, stated to CoinDesk in an email: "This reminds us of the stagnation we also witnessed at the end of last month."
It seems that we are witnessing regular rhythms, with increased flows at the beginning of the month and caution at its end. He added: "Cryptocurrencies are ignoring the positive sentiment in the stock markets, and technical factors are temporarily dominating the agenda."
Bitcoin price is $118,493.13
It traded within a narrow range between $117,000 and $119,000 over the past 24 hours before hovering around $118,500 in the early hours of trading in the United States. While the largest cryptocurrency in the world is still up by 0.5% over the past week, its pace of advancement has slowed - with financing rates declining and trading volumes dropping on some exchanges.
The Ethereum coin ($ETH ) that rose by 22% last week has also started to lose momentum. Ethereum (ETH) prices hovered around $3,670 at the time of writing this report, with staking flows stabilizing and demand for exchange-traded funds settling after a frenzied five-day buying spree.
BNB broke the $800 barrier earlier on Wednesday, recording new all-time highs, with ecosystem stakes like PancakeSwap rising.
$CAKE 2.9338
and memecoin #FLOKİ
FLOKI$0.0₃1466
by up to 10%.
At the same time, it seems that the rise of alternative currencies has stopped. The Solana coin rose by 18.2% over the past seven days, but it has dropped by 1.3% in the last 24 hours. The best-performing coins over the past seven days are ADA (ADA) from Cardano, which jumped by 14.9%, and XRP
XRP$3.4349
which rose by 17.1%, has now stabilized.
Even Dogecoin
DOGE$0.2547
- which surprisingly outperformed last week - has started to retreat after a weekly rise of 27.1%, driven by speculation about an instant exchange-traded fund and a $500 million reserve from the mining company Bit Origin.
Nevertheless, the overall sentiment is still nearing euphoria. The crypto fear and greed index has risen to 74, which is very close to the "extreme greed" level that has often indicated nearby peaks. According to Kobetskevich, breaking this level will require a strong new driver.
He said: "The absence of new valid reasons on the horizon prevents cryptocurrencies from entering the excessive greed zone (>75)." He added: "This reason could be the approval of an exchange-traded fund (ETF) with the possibility of participation, or the expansion of alternative currencies in exchange-traded funds."
Hopes for a rate cut in July have receded
At the same time, hopes for a rate cut in July have largely diminished among forecasters.
The U.S. Federal Reserve is still under severe political pressure ahead of its meeting on July 30, with President Trump and some of his appointees publicly calling for interest rate cuts despite steady inflation. While Fed Chair Jerome Powell is expected to keep interest rates steady, the increasing divergence within the Federal Open Market Committee worries economists.
A Reuters poll showed that more than 70% of economists are now concerned about the Fed's independence. However, with markets pricing in a 53% chance of a rate cut in September and impending deadlines for tariffs looming on August 1, cryptocurrency traders are looking for any sign of policy easing as favorable wind.#TrumpBitcoinEmpire #BTCvsETH #StrategyBTCPurchase
