5 min readBitcoin is rising above 118k, recovering some of yesterday’s losses, but remains below Monday’s 123k record high.
More broadly, after a single day of pullback, the crypto market is higher. Ninety-two of the top 100 coins, based on market capitalization, have seen their prices rise over the past 24 hours. BTC is back above 118k, and ETH has risen back above 3k. Market sentiment remains in a state of Greed, indicating a willingness to invest.
Bitcoin surged to an all-time high of $123,000 at the start of the week, supported by surging institutional adoption, tariff uncertainty, de-dollarization, and optimism over pending US legislation that could bring much-needed regulatory clarity for digital assets. Other cryptocurrencies were also driven higher, with Ethereum and Ripple gaining momentum.
Trump helps Crypto Week advance
The rally has been partly driven by Crypto Week in Congress, where lawmakers are considering three major bills focused on stablecoin, digital asset regulation, including a ban on a Federal Reserve-issued digital currency.
On Tuesday, House lawmakers voted 196 to 122 against a procedural rule required to advance debate on the legislation, which briefly dampened market sentiment, sparking an almost 3% pullback in Bitcoin and declines across the broader cryptocurrency markets.
However, President Trump stepped in to revive momentum for the crypto legislation making its way through the House and announced that he has secured the support of 11 of 12 House representatives for the GENIUS bill, which establishes federal oversight for stablecoins. A full vote on the GENIUS Act could now take place as early as today.
In addition to the Genius Act, House lawmakers will also discuss the Clarity bill and the anti-CBDC surveillance state act, amid expectations that crypto regulation could reach President Trump’s desk before the August recess.
Fed outlook in focus
Data released on Tuesday showed that the US CPI rose 2.7%, up from 2.4%, and core CPI rose to 2.9% in June, amid signs that firms have started to pass on increased costs to consumers from Trump’s trade tariffs. Federal Reserve Chair Jerome Powell had warned of the inflationary impact of Trump’s tariffs.
Following the data, the market reined in expectations for a Federal Reserve rate cut to a 50% chance of a September rate reduction, down from 54% before the data release. Bitcoin performs better in environments with lower interest rates.
Ethereum becomes the 30th largest asset globally.
While Bitcoin has risen to record highs, Ethereum has surpassed $3,000 but remains considerably below its previous record high of $4,800, set in November 2021. The price is gaining momentum, supported by rising institutional demand, expectations for a stablecoin summer, and hopes of favorable regulatory developments.
Over the past week, ETH has increased by over 20% and, at the time of writing, is up 5% on the day. This recent rally has taken the ETH market capitalization to $382 billion, surpassing that of Johnson & Johnson, which stands at $373 billion and positioning Ethereum as the 30th largest asset globally.
The surge in price comes as activity rebounds with transactions almost back at the 1.5 million level, a level last seen in 2021.
ETH technical analysis
ETH broke out of range, pushing above the 2700 barrier and the 3000 psychological level. Buyers will look to extend gains towards 3500, the 78.6% Fib retracement of the 4100 high and 1385 low. Buyers should be wary of the deeply overbought conditions.
Immediate support is at 3000, and below here, 2700 comes back into play.
Trading involves risk.
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