US Interest Rate Hike Concerns Ease…Bitcoin, Ethereum, and Other Cryptocurrencies Rebound

▲ Bitcoin (BTC), Dollar (USD) ©

Bitcoin (BTC) has recovered the $61,000 level, boosted by easing concerns about a US interest rate hike, while Ethereum (ETH) and major altcoins have also risen, showing a gradual improvement in cryptocurrency market sentiment. However, an analysis suggests that the overall market trend has not yet escaped its bearish phase, and a breakthrough of key resistance levels is needed for further gains.

According to CoinDesk, a cryptocurrency media outlet, on July 3 (local time), Bitcoin traded around $61,600 after rebounding approximately 6.5% from its 21-month low of $57,750 earlier this week. Weak US employment figures lowered the likelihood of the Federal Reserve (Fed) raising interest rates, leading to improved investor sentiment. Ethereum also rose for three consecutive trading days, accumulating an 11.5% gain this week. Ada (ADA), Zcash (ZEC), and Dash (DASH) also saw increases of 2.2% to 3.1%. However, the outlet noted that most cryptocurrencies continue to show lower lows and lower highs, indicating an overall bearish market structure. For Bitcoin to reverse its trend, it needs to recover $67,000 and then surpass $81,000.

Bullish sentiment expanded in the derivatives market. Over the past 24 hours, the total liquidation volume for cryptocurrency futures reached $417 million, with Ethereum accounting for the largest share at $160.8 million, surpassing Bitcoin's $97 million. Ethereum futures open interest hit a high of 14.31 million ETH since June 10, and the annualized funding rate also rose to approximately 10%. This indicates an increase in bullish bets by investors, the outlet explained. Dogecoin (DOGE) futures open interest also reached a high of 14.13 billion DOGE since May 16, showing a resurgence in leverage demand. In contrast, Hedera (HBAR) and Zcash showed a trend of strengthening selling pressure.

Signals indicating a dominance of buying pressure were also observed across the market. The 24-hour cumulative volume delta (CVD) for most cryptocurrencies was positive, and the 30-day implied volatility index for Bitcoin and Ethereum declined, reversing June's surge. In the options market, Bitcoin call options between $60,000 and $70,000 were the most actively traded, while Ethereum saw concentrated trading in $2,500 call options. Furthermore, some large investors reportedly established option strategies anticipating Bitcoin to move within the $66,000-$68,000 range by July 17.

Among altcoins, Uniswap (UNI) showed the strongest upward trend. Uniswap surged over 11% in 24 hours after the announcement that it was selected as the core automated market maker (AMM) for Robinhood's Layer 2 blockchain, with its daily trading volume nearly doubling to $320 million. AI-related tokens such as Fetch.ai (FET), Render (RENDER), and Bittensor (TAO) also rose by 1.5% to 2.3%. CoinMarketCap's Altcoin Season Index remained in the neutral zone at 46, while Solana (SOL) recorded the strongest gain among major cryptocurrencies, rising over 17% in the past week.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*