The price of Bitcoin reached another significant milestone due to a calmer geopolitical context, soaring above $110,000 for the first time in two weeks. But this gain doesn’t seem to be a simple technical rebound: it rather looks like something substantially more bullish might be afoot in the crypto market. Relations between the U.S. and China are definitely turbulent, but some recent easing seems to have restored enough confidence in markets overall for the crypto bubble to reinflate.
The new phase that the cryptocurrency market is entering is one of measured euphoria. It is far from a record, certainly, but at a quite good level (which is now upwards of $103,000), and it’s not just Bitcoin price rising: many top tokens are rising again in price.
The market has been boosted by the liquidation of over $300 million in short positions in just 24 hours, almost $200 million of which were on Bitcoin itself. The negative funding that preceded the rally reflected a market heavily occupied by short sellers, who were then compelled to cover their positions and buy back the asset they had sold.
The next technical target is now clearly identified: $120,000. But this would only be possible if the price continues to hover around 110,000 and above. We still need to be a little patient.
In the wake of Bitcoin, altcoins are also performing pretty well. Ethereum has increased in value by 4.5% this week, crossing the more-than-$2,640 threshold, driven by (still) a continuous influx of fresh investments coming via ETFs (15 consecutive days of net inflows). Solana (SOL USD), Dogecoin, and Shiba Inu are also (more than) in the green this week, riding a route that is slippery but still powerful.
At the same time, Bitcoin ETFs are showing signs of short-term fatigue (five days of net outflows out of seven), which points to a possible shift in portfolios toward projects with great technological value. This climate could well herald a lasting reconfiguration of the crypto market.
Bitcoin has a safe and sound space in the ecosystem as an investment asset, but Ethereum is coming up fast as a second credible alternative for institutional investors because of its decentralized finance (DeFi) solutions and growing use cases in and around the asset tokenization space.
Memecoins, meanwhile, remain key indicators of short-term speculation and reflect intense activity among retail traders. If this momentum continues, the summer could well be a strategic turning point for digital assets.
But this renewed optimism is not limited to the crypto sphere. It is accelerating their institutionalization: more and more countries — including the United States — are now considering integrating Bitcoin into their strategic reserves, just like gold. Meanwhile, big-time financial players are shoring up their positions. BlackRock, for example, just bought up $48.4 million worth of Ethereum. That acquisition is yet another indication that the folks who manage our money are gaining more confidence in the crypto sector.