Daily Crypto Signals: Bitcoin Retreats from Record High While Ethereum Surges Past $3,000
Bitcoin faces technical correction after hitting new all-time high of $123,218 as inflation data dampens rate cut hopes. Ethereum outperform
Quick overview
- Bitcoin reached a new all-time high of $123,218 but faced a technical correction due to inflation data impacting rate cut expectations.
- Ethereum outperformed Bitcoin, rallying above $3,000 driven by significant ETF inflows and treasury buying activity.
- Regulatory challenges emerged as Trump-backed stablecoin proposals failed to gain unanimous support among Republicans.
- The darknet marketplace Abacus Market went offline amid suspected exit fraud, causing turmoil in the crypto ecosystem.
Bitcoin BTC/USD faces technical correction after hitting new all-time high of $123,218 as inflation data dampens rate cut hopes. Ethereum ETH/USD outperforms with strong rally above $3,000, driven by ETF inflows and treasury buying activity.
Crypto Market Developments
This week, the crypto market moved in several directions because of regulatory and macroeconomic variables that affected how investors felt. Republicans in Congress saw their first setback on crypto legislation when Trump-backed stablecoin proposals didn’t get unanimous support from the party, even though the president publicly urged them to. The planned GENIUS Act, which would have set rules for payment stablecoins, was part of a larger “crypto week” effort that also included laws about market structure and central bank digital currencies.
At the same time, the darknet ecosystem was thrown into chaos when Abacus Market, the largest Bitcoin-powered Western darknet marketplace, went offline in what looks like an exit fraud. TRM Labs said that the platform’s absence was probably due to pressure from law authorities. Users had trouble withdrawing money in late June, just before the network shut down completely.
Ripple confirmed that it wants to get a MiCA license to expand into Europe, and it did so by registering Ripple Payments Europe S.A. in Luxembourg. The move shows that more and more institutions are using European regulatory frameworks as businesses look for ways to operate bitcoin legally in the European Economic Area.
Bitcoin Recovers to $118k After a Dip
This week, Bitcoin’s price movement showed how technical momentum and macroeconomic uncertainty may affect each other. BTC rose to a new all-time high of $123,218, but after the announcement of the June CPI data, it fell significantly to $116,500. The inflation data said that the headline CPI rose to 2.7% year-over-year, the highest level since February. The core CPI also rose to 2.9% year-over-year. This persistent inflation trend made people less hopeful for big Federal Reserve rate cuts. The US Dollar Index rose 2.1% in July to 98.5.
Even if Bitcoin has dropped recently, the technical prognosis for it is still cautiously positive. Analysts say that the $119,250–$120,700 zone is very important for bulls to get back into, since it is an area where aggressive selling pushed prices down before. If the price breaks out of this range cleanly, it might mean that bullish momentum is back and that new highs above $123,000 are possible. In the immediate term, though, a larger decline seems more likely, with possible support at the fair value difference between $113,700 and $115,300, which is in line with the 200-day exponential moving average.
Ethereum Outperforms Bitcoin
Ethereum showed amazing strength last week, returning to the $3,000 barrier for the first time since February 1. It also outperformed Bitcoin, which fell while Ethereum gained everyday. The altcoin hit fresh weekly highs of $3,090, thanks to a lot of money moving out of Bitcoin as people took profits. Swissblock, an analytics company, said that Bitcoin’s current rally has reached day 12, which is close to the usual 15-30 day length of prior bullish expansions. This could mean that investors are moving their money to altcoins.
The ETH/BTC pair showed especially strong signs, breaking structure for the first time since May 24 and getting back above its 200-day moving average for the first time in a year. The weekly relative strength index has broken out of a three-year decline, and a golden cross formation is about to happen, according to technical analysis. With Bitcoin’s dominance falling and these changes happening, it looks like an altseason is coming where Ethereum might do much better than Bitcoin. Institutional backing is still strong, with more than $1 billion in ETF inflows since Wednesday and more than 545,000 ETH bought by Ethereum treasury businesses in the last 30 days. This shows that people still believe in the asset’s long-term potential.
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