On Tuesday, the overall cryptocurrency market saw mixed movements, with Bitcoin rising above $70,000 in trading. According to Bitpush data, BTC surged over 3% during the midday session, reaching a daily high of $71,135 after trading near the support level of $69,000 in the morning.
At the time of writing, BTC was trading at $70,560 with a 2% increase in the past 24 hours. Ethereum (ETH) broke through $3,800, showing a 1.4% increase in the past 24 hours, slightly lagging behind BTC. Cryptocurrency analysis firm K33 Research predicts that the upcoming US spot ETH ETF could attract $4 billion in funds within five months, potentially surpassing BTC’s performance.
In the altcoin market, the majority of the top 200 tokens by market capitalization showed an upward trend. Uniswap (UNI) led the gains with a 20% increase, trading at $11.51, followed by ORDI (ORDI) with a 16.7% increase, and Nervos Network (CKB) with a 14.2% increase. The meme token Cat in a Dogs World experienced the largest decline, dropping 6.7%, followed by Skale (SKL) with a 6.6% decrease and Pixels (PIXEL) with a 5.4% decrease.
The overall market capitalization of cryptocurrencies is currently $2.61 trillion, with Bitcoin’s market dominance at 53.2%. In traditional markets, the S&P 500 index, Dow Jones index, and Nasdaq index all closed higher, rising by 0.15%, 0.36%, and 0.17% respectively.
Macro data continues to influence trader sentiment. BTC and ETH have been in a narrow trading range last week, with traders focusing on upcoming macroeconomic data, such as the May employment report released on Friday, the CPI and FOMC meeting minutes on Wednesday, and the PPI data on Thursday, as well as the upcoming spot Ethereum ETFs.
Analysts from Secure Digital Markets stated, “Macroeconomic developments will continue to significantly impact trader sentiment for the remainder of the year.” They added, “Despite poor economic indicators, market sentiment remains active, thanks to the strong belief of long-term investors and expectations for more spot ETF approvals.” “On-chain analysis shows that over half of the Bitcoin supply is still idle, highlighting people’s long-term confidence in the asset.”
Analysts also noted, “The market conditions have been in a narrow trading range, indicating a lack of decisive action from traders. It seems that we may be entering the usual summer doldrums, although the current low trading volume and stagnant market are more likely due to a lack of clear catalysts to drive a breakthrough.”
Cryptocurrency hedge fund QCP stated in their update on Tuesday, “We expect the non-farm payroll data this Friday to further boost the bullish momentum. The market currently expects a 0% chance of interest rate cuts in June and July. Weak non-farm payroll data could change this scenario.”
Despite some people believing that this summer will be a slow period, Tom Lee, the Managing Partner and Head of Research at Fundstrat Global Advisors, believes it will be a positive month for both cryptocurrencies and stocks. Tom Lee stated in an interview with CNBC, “Inflation is lower than expected, and I think the job market is cooling off but not significantly weakening, which is a good situation for the risk market. The sell-off in April hasn’t fully recovered yet. That’s why we expect a rebound in May, and I think that will continue into June.” Lee stated that his target is for the S&P 500 index to reach $5,500 by the end of this month, which is a 4.1% increase from the current price.
When asked if he still believes there is a possibility for Bitcoin to reach $150,000 by the end of 2024, Lee stated that institutional adoption has just begun and there is still significant growth potential for BTC. He said, “We remain constructive on Bitcoin, which will provide some momentum. We also believe that while there has been significant inflow into Bitcoin ETFs, institutional adoption and infrastructure development around Bitcoin have just started. This makes cryptocurrencies, especially Bitcoin, a legitimate asset class. I think this expanded adoption will drive the price of Bitcoin to $150,000. What’s surprising again is that Bitcoin still follows mathematical patterns, with over 87% of Bitcoin’s movements still following wallet counts and activity per wallet, and both are on the rise.”
Market analyst Jelle on X platform stated that after nearly 100 days of consolidation, Bitcoin is expected to break its previous high, with a target price of $85,000.
Rekt Capital, another market analyst, stated that the only resistance preventing Bitcoin from setting a new all-time high is the resistance zone between $72,000 and $73,500.
Glassnode’s latest report predicts that the current situation is “typical of the early thriving phase of a bull market,” and Bitcoin’s volatility will intensify. The report added, “The sell-side risk ratio for both long-term and short-term holders has readjusted, indicating that a new balance has been found. This indicates that the market is ready to act, and expectations for recent volatility should increase.”
Author: Bitpush News Mary Liu