Crypto markets experienced a decline on Thursday as they were affected by a combination of hawkish macroeconomic guidance, upcoming global trade deadlines, and decreasing volatility. Bitcoin traded around $104,700, witnessing a 1.2% decrease in the past 24 hours, while ether was just below $2,860, down 1.8% during the same period.
This subdued price movement is consistent with the broader market unease following the Federal Reserve’s decision to keep interest rates steady while emphasizing a cautious approach to inflation.
Historically, the crypto market tends to be quieter during the June-July period, and recent observations indicate that implied trading volumes for Bitcoin have fallen below 40%. This decline reflects a decrease in the risk premium that was previously present due to geopolitical tensions, according to insights from QCP Capital.
Despite the challenging environment, some market experts maintain a positive outlook. Joel Kruger, a strategist at LMAX Group, highlighted that the technical indicators for Bitcoin remain positive. He noted that a break above recent highs could potentially lead to a surge towards $145,000. Similarly, while ether has not yet regained its 2021 highs, it is showing signs of momentum with a breakthrough above $2,900 potentially paving the way toward $3,400.
A notable development for the crypto sector is the U.S. Senate’s recent passage of a stablecoin regulatory framework. This progress contributes to an increasingly regulatory-friendly environment, which is positively influencing institutional interest in cryptocurrencies. Kruger pointed out that this global shift promises greater clarity and facilitates wider institutional adoption.
While the immediate outlook appears cautious due to month-end option expirations, systematic rebalancing, and a lack of new catalysts that may keep Bitcoin trading within a $102,000 to $108,000 range, many analysts are optimistic about the second half of the year. Kruger emphasizes that the “worst may be behind us,” suggesting that the next upward movement could take many by surprise.
The evolving landscape of the cryptocurrency market, marked by regulatory advancements and potential recovery trends, offers a more hopeful perspective for investors as they look toward future opportunities.