With bullish funds returning and favorable macroeconomic conditions driving momentum, the cryptocurrency market today (3rd) surged, with Bitcoin briefly breaking through the $110,000 mark, and Ethereum and mainstream competitive coins also rising simultaneously. Although investor sentiment has improved, analysts believe that Bitcoin still needs a dose of stimulus to create new historical highs.
According to CoinGecko market data, Bitcoin reached a high of $110,117 today, and as of writing has retraced to $109,787, which is only 1.8% away from its historical high of $111,814.
BTC Markets analyst Rachael Lucas pointed out that this rebound in the cryptocurrency market is mainly benefiting from the rebound in the U.S. M2 (broad money supply), reactivating market capital momentum.
Although an increase in capital supply does not necessarily reflect immediately in price trends, it usually lags behind the flow towards risk assets like cryptocurrencies.
Positive signals have also emerged, as the United States and Vietnam have finalized a new round of trade agreements, announcing a significant reduction of the tariff on Vietnamese imports from 46% to 20%. This agreement comes before the expiration of the U.S. 90-day tariff suspension period on July 9 and is seen as a sign of a softer stance from Washington in foreign trade negotiations, helping to alleviate market concerns about the global trade environment.
Rachael Lucas stated that although Bitcoin has recently managed to stay above the $100,000 mark, further breakthroughs to historical highs still rely on 'sustained and systemic' catalytic factors.
She further explains that if the Federal Reserve can provide clearer guidance on interest rate policies, or if the inflow of funds into Bitcoin spot ETFs accelerates, it could trigger the next wave of price surges.
The core driving force behind this bullish market is actually the stable increase of institutional funds. If a decisive breakthrough is to occur, it still relies on them to continue entering the market.
She also reminds that although institutional investors bring liquidity and legitimacy to the market, if there is a lack of retail investor activity, the overall market structure may become too 'top-heavy', and its sensitivity to macro policies and capital rebalancing variables will also be amplified.
"Bitcoin is only 1.8% away from its historical high, the market is eagerly waiting for the 'next dose of stimulus'" This article was first published on (Block客).
