On July 3, the price of Bitcoin reached a three-week high, surpassing $110,000. The recovery occurred amid a global increase in the money supply (M2), which hit a new all-time high, exceeding $55 trillion.

Hourly chart of BTC/USDT on Binance. Data: TradingView.
In a comment to The Block, BTC Markets crypto analyst Rachel Lucas linked today’s market growth to macroeconomic liquidity:

“Although this doesn’t always lead to immediate price movements, such capital eventually finds its way into risk assets like cryptocurrencies with some delay.”

Lucas believes that a “sustainable catalyst” is needed for a true breakout to all-time highs. This could be a clearer understanding of future Fed interest rates or continued investment inflows into ETFs.

“It is institutional investments that have quietly supported this rally, and they must continue for a decisive breakout,” she noted.

On July 1, for the first time in the past 15 days, spot Bitcoin ETFs recorded outflows. This may have indicated investor hesitation. The next day, on July 2, the chart of cumulative inflows into exchange-traded funds confidently hit a new all-time high, dragging the Bitcoin price upward.

Chart of inflows into spot Bitcoin ETFs. Data: SoSoValue.
Among the possible factors behind the growth:

• U.S. President Donald Trump praised a new trade agreement with Vietnam, which opens market access for American manufacturers;

• Ripple confirmed that it had submitted an application to the U.S. Office of the Comptroller of the Currency for a federal banking license;

• Hopes for a Fed rate cut were revived following a series of dovish statements from U.S. central bank officials.

Given Bitcoin’s confident breakout from its recent sideways range, analysts are becoming increasingly convinced that a new all-time high is inevitable.

Market researcher known as Jackis pointed out a rare market occurrence: Bitcoin’s volatility recently dropped to its lowest levels since 2023.

“Each time we reached these levels, a powerful volatility spike followed within five weeks — sometimes even sooner,” Jackis observed.

Technical analysis expert known as Titan of Crypto pointed out a bullish crossover of the MACD indicator on the daily chart. He considers this a strong momentum signal and noted that Bitcoin is attempting to break out of a “bull flag” pattern. If the breakout is successful, a move toward the $137,000 level is possible.

Altcoins emerge from the shadows as Ethereum gains momentum
Ethereum and other altcoins showed signs of life following Bitcoin. ETH's price surged over 8% in the past 24 hours, breaking above the $2,600 mark.

15-minute ETH/USDT chart on Binance. Data: TradingView.
Grayscale’s Head of Research, Zach Pandl, told Decrypt that he expects new highs for many tokens in the second half of the year, despite current valuations remaining within recent ranges.

“Recent approvals of crypto ETPs may have increased investor confidence that capital from traditional finance will begin flowing into altcoins as well,” the expert believes.

He noted that increasing regulatory clarity in the U.S. is likely attracting more users and capital to the crypto ecosystem.

“Today, Bitcoin is like a backseat passenger, while the market is being driven by altcoins,” Pandl added.

CryptoQuant expert Carmelo Aleman is optimistic about Ethereum.

According to his data, accumulation addresses that meet strict criteria (not belonging to centralized exchanges, and showing minimal or zero ETH outflows) have hit a historical record.

As of June 30, these addresses held approximately 22.75 million ETH, a 35.97% increase over the month.

The average purchase price as of July 1 was $2,114.70. At the current price of around $2,600, they are up more than 23%.

Aleman also noted a new all-time high in the volume of liquid staking — 35.56 million ETH. This is attributed to the fact that most accumulation addresses belong to institutional investors, ETFs, and large holders who opt for liquid staking yield while awaiting further price growth.

“This suggests that the market may be preparing for a significant ETH rally in the near future,” the expert concluded.

As a reminder, corporations have outpaced ETFs in Bitcoin purchases for the third consecutive quarter.

Experts have pointed to the reason why Bitcoin has remained around the $100,000 mark for an extended period.