Crypto markets have been booming lately, with Bitcoin and most altcoins showing impressive performances. What are the factors driving this unexpected surge ? Analysis of this bullish trend that could signal the start of a new uptrend cycle.
After months of stagnation, Bitcoin (BTC) has finally managed to break through the key threshold of $110,000, a first in nearly a month. But that’s not all, most major cryptocurrencies have also recorded significant gains in recent days. Fartcoin (FARTCOIN), Dogwifhat (WIF), and Celestia (TIA) are among the best-performing crypto altcoins.
These performances translate into a clear increase in daily trading volume, which has jumped by more than 30% to reach $133 billion across all centralized and decentralized platforms. At the same time, the total market capitalization of the crypto ecosystem has increased by 3%, reaching $3.4 trillion.
Currently, Bitcoin has dropped back below $109,000 as many traders have opened short positions, while others have taken profits. However, LTHs (long-term holders) continue to accumulate.
Several elements seem to explain this recent wave of optimism in the cryptocurrency market. First, the imminent adoption of the “Big Beautiful Bill” by the US House of Representatives is generating high hopes. This text, already approved by the Senate, is expected to stimulate American public debt, pushing many investors toward Bitcoin as a safe-haven asset.
Cryptocurrencies are also benefiting from expectations of interest rate cuts by the US Federal Reserve in the coming months. Analysts at Goldman Sachs and Morgan Stanley forecast three and seven rate cuts respectively by the end of the year. Crypto assets typically perform better in a low-interest-rate environment.
Another key factor is the growing institutional interest in Bitcoin and altcoins. Bitcoin ETFs and Ethereum ETFs continue to attract capital from American investors, while more and more companies are adding these assets to their balance sheets.
Finally, the strengthening of regulatory clarity around cryptocurrencies is also contributing to this bullish momentum. The upcoming adoption of the GENIUS Act in the United States and the SEC’s more favorable approach toward decentralized finance should encourage new investors to enter the market.
In conclusion, the combination of these positive elements suggests a continuation of the bullish trend in the cryptocurrency market in the coming months. While Bitcoin and altcoins have indeed crossed important technical thresholds, analysts expect this momentum to continue, with the potential for significant new increases in the short and medium term.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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