Bitcoin and Ether Rally Fueled by Renewed Risk Appetite and Network Upgrades
Bitcoin and Ether, the two biggest digital assets by market value, are nudging their strongest monthly performance since 2021. A renewed willingness to take on risk in global markets and a notable Ethereum upgrade aimed at improving energy efficiency and transaction dynamics are shaping the current backdrop.
In July, Bitcoin has advanced roughly 26 percent, while Ether has surged by about 65 percent. Trading activity cooled a touch today after a robust sprint higher, with Bitcoin trading near 23,538 dollars in early U.S. trading and Ether hovering around 1,672 dollars as markets recalibrate after recent gains.
The softer pace in the U.S. economy has investors weighing the possibility that the Federal Reserve could pause rate hikes by year-end and perhaps start reducing borrowing costs in the coming months. Such a shift could improve overall liquidity for speculative assets, including cryptocurrencies. Market observers point to signs that the Fed may be nearing the end of its tightening cycle, a stance historically associated with softer risk-off moves and a more favorable mood for crypto assets. The cooling of highly leveraged positions suggests a potential bottoming process for some digital assets, according to industry watchers. Market Analysis
Experts warn that cryptocurrencies could enter a long-term bear cycle
Cryptocurrencies are attempting a recovery after this year’s downturn, which trimmed a substantial portion of the MVIS CryptoCompare Digital Assets 100 index. Earlier in the year, the sector faced pressure from aggressive monetary tightening by the Federal Reserve and the collapse of highly leveraged entities such as a prominent crypto hedge fund. Market Analysis
Meanwhile, the Ethereum network continues to pursue energy-efficient upgrades, a factor that has strengthened Ether’s longer-term appeal. In the near term, Ether may trade in a range roughly between 1,915 and 2,000 dollars as traders weigh near-term catalysts and macro data. Market strategist Mark Newton of Fundstrat noted that Ethereum looks technically attractive in the short term, suggesting pullbacks in the coming weeks could be seen as buying opportunities for both holders and new entrants alike.
Even with positive signals, cryptocurrencies faced pressure toward the end of the week as U.S. inflation metrics surprised to the upside, fueling concerns that price gains could endure longer than expected. At the same time, the chairman of a leading U.S. regulatory body signaled ongoing scrutiny of crypto trading platforms, underscoring continued emphasis on registration and compliance within the sector.
Joe DiPasquale, CEO of BitBull Capital, remarked that observers will be watching how Bitcoin behaves as the month closes and whether it retests key support around the 19,000 to 20,000 dollar zone. He noted that successful rebounds in this range would lay a solid foundation for a sustained rally, should buyers gain conviction and liquidity remain supportive. Market Analysis