The crypto market rebounded on July 2 as Bitcoin reclaimed $60,000, adding nearly $50 billion to total market value in about 90 minutes. Comments on possible Fed rate cuts lifted Bitcoin, Ethereum, and major altcoins, though institutional demand stayed weak and investors remained cautious.
The crypto market bounced on July 2 after Bitcoin reclaimed the $60,000 level, lifting the total crypto market by nearly $50 billion in about 90 minutes. Improving macro sentiment, technical support, and renewed buying across major cryptocurrencies drove the move, even as institutional demand stayed weak.
What triggered the rally
The biggest push came from remarks by former Federal Reserve Governor Kevin Warsh at the ECB Forum in Sintra. Warsh said inflation is still above target but pointed to four straight quarters of AI-driven productivity gains, arguing that if productivity keeps improving it could eventually give the Fed more room to cut interest rates.
Warsh is no longer a Fed policymaker, yet markets read his comments as a positive signal for future easing. Lower rates generally increase demand for risk assets, and that expectation helped fuel buying across Bitcoin, Ethereum, and the broader crypto market.
Bitcoin led, altcoins followed
Bitcoin climbed around 3%, moving back above $60,000 and adding roughly $36 billion to its market value. Ethereum followed with gains of more than 3%, while the total crypto market capitalization climbed back above $2.1 trillion.
Several altcoins posted strong gains over the past 24 hours. Solana rose 6.05%, XRP added 1.38%, and Cardano jumped 2.61%.
Analysts are watching the $2.08 trillion level on the total market cap chart; a break above it could open the door toward $2.16 trillion. For Bitcoin, holding above $60,000 is the key level, with the next resistance seen around $62,000 to $64,000.
Institutional demand stays soft
Despite the rebound, spot Bitcoin ETFs kept recording net outflows this week, a sign that institutional investors have yet to return in force. The latest outflows included $212.4 million from the iShares Bitcoin Trust (IBIT) and $10.2 million from the Fidelity Wise Origin Bitcoin Fund (FBTC), while Citigroup recently lowered its one-year Bitcoin price target.
Traders now turn to upcoming U.S. economic data and any fresh signals from Fed officials. If rate-cut expectations strengthen and Bitcoin holds its key levels, the rebound could extend; but if institutional selling continues, volatility is likely to stay high.
Source: Coinpedia via TradingView
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