Bitcoin and Ether are approaching a milestone month, riding a renewed appetite for risk across global markets and buoyed by an Ethereum network upgrade. The leading digital assets have energized investors as July progresses, signaling renewed confidence in the crypto space.
Bitcoin has risen about 26 percent this month, while Ether has surged around 65 percent. Gains paused on Friday, with Bitcoin slipping to a level near $23,538 as of early morning in New York and Ether hovering around $1,672. The market pause comes amid a broader market cooldown and ongoing consolidation after a strong month so far.
Some observers note that a cooling US economy may prompt the Federal Reserve to end its rate-hiking cycle later this year and potentially ease borrowing costs next year, creating a more liquid environment favorable to speculative assets. This shift would support continued interest in digital assets as investors recalibrate risk and reward dynamics in a shifting macro backdrop.
Analysts emphasize that the path for risk assets has improved as traders price in a softer trajectory for monetary tightening. A veteran market watcher commented that recent liquidity improvements have reduced pressure from leveraged positions, suggesting some stabilization in sentiment and a possible base beneath recent price action.
Experts warn that cryptocurrencies may endure a long-term bear market
Cryptocurrencies have tried to rebound from this year’s downturn, which trimmed more than half of the MVIS CryptoCompare Digital Assets 100 index. Earlier in the year, virtual currencies were hit by tighter monetary policy and notable equity and credit stresses, including high-profile crypto-hedge fund bankruptcies that underscored risk in the space.
On the Ethereum network, the upgrade has helped position ether as a more energy-efficient settlement layer, with the asset often trading in a familiar band. Market participants project ether could swing between roughly $1,915 and $2,000 in the near term, depending on demand and broader market sentiment. A senior technical strategist noted that Ethereum appears to offer attractive risk-reward in the near term, potentially supporting buyable pullbacks through mid-August.
Nevertheless, the week closed with renewed pressure as several key inflation gauges surprised on the upside, reigniting concerns that price gains could persist longer than anticipated. Regulatory tensions also weighed on sentiment, with the chair of the US Securities and Exchange Commission signaling increased scrutiny of trading platforms seeking registration, a move that investors watch closely for guidance on custody and compliance standards.
Industry observers highlighted the importance of price action within critical support zones. A prominent fund manager suggested that a solid bounce off around the upper end of the $19,000 to $20,000 range could lay a sturdy groundwork for further upside, should macro conditions remain favorable for risk assets. The current dynamic reflects a balance of cautious optimism about adoption and the ongoing need to navigate volatility and regulatory developments.
Market participants continue to monitor liquidity cycles, central bank policy cues, and the evolving ecosystem of decentralized finance and institutional involvement. The interplay of these factors will shape whether the crypto market sustains its momentum or pivots toward a more measured, longer-term pattern. Investors weigh the potential upside against the risks of macro shifts, technology risk, and competitive pressure across digital assets.