Crypto Assets Market Dynamics: Bitcoin Hits Resistance at Highs, Ether at $4000 May Just Be the Starting Point

Market Observation

The U.S. House of Representatives has passed the GENIUS Act and the CLARITY Act, providing a framework for the regulation of stablecoins and the jurisdiction of Crypto Assets, marking a gradual realization of the long-awaited regulatory clarity in the industry. At the same time, reports indicate plans to allow the $90 trillion 401(k) pension market to invest in alternative assets such as cryptocurrencies, which could have a significant impact on the savings habits of Americans and accelerate the adoption of cryptocurrencies.

Regarding monetary policy, there are differences among Federal Reserve officials on whether to cut interest rates. Some officials support a rate cut in July, believing that core inflation is close to the target and that the labor market faces risks. However, most officials tend to favor maintaining the current interest rates, concerned about the long-term effects of tariffs. The market expects a high probability that interest rates will remain unchanged this month.

Analysts point out that the recent significant rise in Bitcoin's price, reaching new highs, is mainly due to the joint push from both on-site and off-site funds. The breakout from the fluctuation range of 90,000 to 110,000 USD is seen as the beginning of the fourth wave of the bull market, with a rapid increase in the market expected in the coming months. This breakout has also spurred the upward momentum of other crypto assets.

Bitcoin is currently facing a key resistance level of around $120,000, and it may fluctuate between $115,000 and $123,218 in the short term. Analysts believe that a breakthrough of $123,195 will further confirm the upward trend. On-chain data analysis shows that there may still be a 20% to 25% upside potential for Bitcoin before entering the next round of correction.

For Ethereum, analysts believe that its current trend is similar to the 2016-17 cycle, and a breakthrough of $4,000 could trigger a larger scale increase. Some predictions suggest that, driven by multiple factors, the price of Ethereum is expected to reach $10,000. Institutional investors' interest in Ethereum continues to rise, with several listed companies recently significantly increasing their holdings.

In the altcoin market, concept coins related to artificial intelligence continue to cause market fluctuations. After Musk named a new AI companion, the prices of related tokens experienced severe volatility. In addition, a Meme coin born from an AI self-running experiment has also attracted market attention.

Key Data

• Bitcoin Price: $120,495, Year-to-Date Increase 28.59%
• Ethereum price: $3,647.28, year-to-date increase of 9.03%
• Market Sentiment: Greed (Fear & Greed Index 71)
• Market share: Bitcoin 60.9%, Ethereum 11.1%
• Total liquidation amount in 24 hours: 610 million USD

ETF Fund Flow

• Bitcoin ETF: Net inflow of $523 million, with positive inflows for 11 consecutive days.
• Ethereum ETF: Net inflow of $602 million, setting a historic second-highest record.

Market Outlook

• Hong Kong's first Bitcoin ETF will be listed today.
• Multiple encryption projects will undergo token unlocks.
• Among the top 100 by market capitalization, Lido DAO, Hedera, and Cronos have performed outstandingly.

Hot News

• Multiple exchanges have launched new tokens or trading pairs
• Well-known investors and institutions continue to increase their holdings in mainstream Crypto Assets.
• Multiple DeFi projects are conducting token buybacks or launching new economic models
• Public companies actively layout crypto assets reserve strategies
• The total market value of Crypto Assets has surpassed 4 trillion USD, with the market value of stablecoins exceeding 266 billion USD.