What You Need to Know:
- Ether and Dogecoin saw significant gains, with Dogecoin rising by 9% and both tokens maintaining a bullish trend over the past week.
- The overall cryptocurrency market reported a 1.7% increase in total capitalization, with Bitcoin trading around $103,700 during Asian morning sessions.
- Cautious sentiment among traders is emerging due to a stronger dollar and trade tensions, possibly influencing short-term profit-taking.
Ether (ETH) and Dogecoin (DOGE) have shown remarkable performance with a 9% rise in the past 24 hours, adding to their recent bullish streak which has consistently pushed both tokens up into the double digits over the week. The total market capitalization of cryptocurrencies is also on the rise, with Bitcoin (BTC) hovering around the $103,700 mark.
Currently, Ether is trading above $2,600, while Dogecoin is around 24 cents. Other cryptocurrencies like XRP, BNB, Cardano’s ADA, and Solana’s SOL have reported gains in the range of 3% to 5%.
Even with positive shifts across various altcoins, traders are wary of external macroeconomic factors that could prompt profit-taking soon. The recent strength in the dollar and the ongoing trade tensions are prompting concerns about whether the bullish trend can persist.
“The strengthening dollar on news of tariffs has been a natural drag on cryptos,” Alex Kuptsikevich, Chief Market Analyst at FxPro, noted in an email. “With Bitcoin so close to its highs, the pull for short-term profit-taking becomes even stronger.”
In the shifting global markets, Bitcoin finds itself in a state of indecision, existing between the contrasts of being seen as “digital gold” and a risky proxy investment. Traders from Singapore’s QCP Capital shared their insights, stating that the conflicting narratives obscure Bitcoin’s directional momentum. As the macroeconomic narrative evolves from protectionism to optimistic trade outlooks, Bitcoin might continue trading within a limited range.
Overall, optimism is stable within the markets, as indicated by the Fear & Greed Index, which has remained above 70 for four consecutive days, a level often aligned with sustained bullish sentiment in the near term.
With the unpredictability shown by Bitcoin in recent days, attention is focused on price dynamics as it approaches the $105 threshold. Observers are eager to see if it will spur further growth or face setbacks.
Recent data from CoinShares recorded $882 million in institutional inflows last week, marking the third week of robust buying activity. Bitcoin led the inflows at $867 million, while Ether received approximately $1.8 million despite its impressive performance last week. Interestingly, Solana experienced outflows totaling $3.4 million, even as traders prepared for $200 call options that will expire in late June.
