Quick overview

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The crypto market experienced significant volatility with Bitcoin BTC/USD breaking past $110,000 and Ethereum ETH/USD touching $2,827, its highest level in 15 weeks, even as the US House Agriculture Committee advanced key digital asset legislation. Market analysts predict Bitcoin could reach $200,000-$230,000 by year-end, driven by potential Federal Reserve policy shifts and growing corporate treasury adoption.

Crypto Market Developments

This week, there was a lot of progress in the regulation of digital assets as lawmakers moved quickly to put up clearer rules for cryptocurrencies. The Digital Asset Market Clarity (CLARITY) Act got 47 votes in favor and 6 votes against in the US House Agriculture Committee. The bill will now be sent to the House for further discussion. The bill’s goal is to make clear rules about who is in charge of digital assets: the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

This regulatory progress happened at the same time when institutions were once again interested in cryptocurrency treasuries. Trump Media and Technology Group said it would raise $2.5 billion in debt and stock to construct a Bitcoin treasury. At the same time, other publicly traded corporations increased their BTC holdings. BitMine Immersion Technologies bought 100 Bitcoin for the first time, while KULR Technology Group bought another $13 million worth of Bitcoin, raising its total holdings to 920 BTC.

Changes in monetary policy that could make cryptocurrencies more popular are part of the bigger picture. Arthur Hayes, co-founder of BitMEX, said that the Bank of Japan’s upcoming monetary policy meeting on June 16-17 might be a big event that leads to a lot of money flowing into risk assets like Bitcoin. He said that a return to quantitative easing could be a big reason for this.

Bitcoin Price Prediction: $200,000+?

 

Bitcoin showed amazing strength, rising 4% to $110,150 and getting close to its May 22 top of $112,000. After temporarily dropping to $100,000 during the public spat between Trump and Musk over tax policy, the leading cryptocurrency swiftly bounced back on short liquidations and fresh purchasing enthusiasm.

Bitwise experts André Dragosch and Ayush Tripathi made optimistic predictions that Bitcoin might rise above $200,000 by the end of the year, with a possible “fair value” target of $230,000. Their analysis focuses on the rising fiscal problems in the US, with the Congressional Budget Office predicting that net interest payments will rise to $3 trillion by 2030. The researchers say that Bitcoin’s limited supply and strength make it a good choice for both unstable economies and rising market sentiment.

Technical indicators back up the positive view. For the first time since mid-2024, the Optimized Trend Tracker (OTT) has gone off, which is usually a sign that the market is going higher. Earlier “power law” models that correctly anticipated Bitcoin’s highs and lows in previous cycles similarly suggest that the price will reach $200,000 by the end of the year. A rising number of analysts agree with Bitwise Chief Investment Officer Matt Hougan’s projection that institutional demand will cause a supply shock that will push BTC above $200,000 by the end of 2025.

More and more publicly traded companies are adding Bitcoin to their treasuries, which is driving up the prices of US crypto-linked equities along with Bitcoin. The trend shows that more and more institutions are seeing Bitcoin as a way to protect themselves from the risks of sovereign default and currency debasement.

Ethereum Crosses $2,800

 

Ethereum had a lot of upward momentum, and on June 10, the price of Ether touched a 15-week high of $2,827. If it stays over $2,700, it could have its highest daily close since February 24. The second largest cryptocurrency by market cap broke out of a month-long range of $2,300 to $2,800.

The basics of the network saw great growth, with the number of unique Ethereum addresses reaching an all-time high of 17.4 million earlier this month. Since the start of Q2, there has been a 70.5% rise in unique addresses. The Base network is responsible for 72.81% of weekly activity, while the Ethereum mainnet has 2.23 million addresses. This growth shows that more people are using the ecosystem, even though there are worries about the long-term viability of the fees.

A big whale trade showed that institutions were interested, as one big holder made $31 million in 44 days by making smart ETH trades. On June 10, the whale sold 30,000 ETH for $82.76 million in an over-the-counter trade. This was after making money by trading prices between $1,830 and $2,827.

For the first time ever, Ethereum’s futures open interest went over $40 billion. This shows that the market is deeply leveraged and has a lot of room for volatility. Liquidation data shows that $2 billion in long holdings are at risk at $2,600, while $1.8 billion in short positions are at risk at $2,900. This means that the liquidity dynamics are balanced.

Ethereum is still the leader in decentralized finance, with a 61% share of total value locked ($66 billion), but it has trouble staying that way because it only made $43.3 million in fees in the last 30 days. Recent changes that favor rollups with cheap data packets have made staker profits lower because ETH’s supply reduction mechanism depends a lot on network expenses.

The options market showed that more institutions were getting involved, with open interest rising from $6.3 billion to $8.3 billion since early April. After Ether’s 49% rise in May, traders used pessimistic hedging techniques. However, 92% of put options are set at $2,700 or lower, which means that if ETH stays at its current levels until the June 27 monthly expiry, the mood will be neutral to bullish.