Leading cryptocurrencies rallied alongside stocks on Tuesday following cooler-than-expected inflation numbers, despite elevated geopolitical tensions remaining in place.
Crypto Market Rallies
Bitcoin hit $65,000 for the first time in over three weeks, while Ethereum came close to reclaiming $1,900, amid a broader market rally.
Over $350 million was liquidated from the cryptocurrency market in the last 24 hours, with bearish short traders bearing the brunt of the losses, according to Coinglass data
Bitcoin’s open interest rose 2.09% over the last 24 hours. Interestingly, Binance derivatives traders, both retail and whale, drastically lowered their long exposure to the leading cryptocurrency.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.15 trillion, contracting 2.06% over the last 24 hours.
Stocks Rally On Soft Inflation Print
Stocks bounced back on Monday. The Dow Jones Industrial Average gained 9.63 points, or 0.02%, to end at 52,508.27. The S&P 500 advanced 0.38% to settle at 7,543.59, while the tech-heavy Nasdaq Composite closed up 0.9% at 26,107.01.
The June Consumer Price Index came in cooler than expected, sharply lowering odds that the Federal Reserve would increase rates at its policy meeting later this month, according to the CME FedWatch tool.
In other news, the U.S. military carried out an “additional round of strikes” against Iran in response to alleged attacks on commercial ships in the Strait of Hormuz. The U.S. also reimposed the naval blockade against Iranian ports.
Bitcoin To Break Out?
Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, identified a “strong bullish divergence on Bitcoin’s daily chart.
Van De Poppe stated that Bitcoin needs a decisive break above $65,000 to enter a key range, with the next upside target shifting toward the range high between $88,000 and $92,000.
On-chain analytics firm Santiment noted cryptocurrency chatter on social media nearing its lowest levels since the summer of 2024.
“The bullish case is simple: quiet crowd, low enthusiasm, and plenty of sidelined disbelief,” Santiment added. “When attention is this washed out, even a modest shift in demand can feel much bigger than the headline mood suggests.”
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