Bitcoin tests $110,000 as Ethereum and altcoins flash positive signals

On 3 July, bitcoin hit a three-week high, pushing above $110,000. The rebound came amid a global expansion in the money supply (M2), which set a new ATH above $55 trillion.

In comments to The Block, BTC Markets crypto analyst Rachel Lucas linked today’s rally to macro liquidity:

“Although this does not always lead to an immediate price move, ultimately such funds find their way into risk assets like cryptocurrencies with some delay”.

Lucas believes the market needs a “sustained catalyst” for a true break to record highs. That could be clearer visibility on future interest rates at the Fed or continued investment into ETFs.

“It is institutional inflows that have quietly supported this rise, and they need to continue for a decisive breakout”, she noted.

On 1 July, spot bitcoin ETFs saw outflows for the first time in 15 days, hinting at investor doubts. The next day, 2 July, aggregate inflows into exchange-traded funds set a fresh ATH, pulling bitcoin’s price higher.

Possible drivers included:

• US president Donald Trump praised a new trade agreement with Vietnam that opens the market to American manufacturers;
• Ripple confirmed it had filed an application with the US Office of the Comptroller of the Currency for a federal bank charter;
• hopes for a Fed rate cut revived after a series of dovish remarks from US central bank officials.

With bitcoin having broken decisively out of its recent sideways range, analysts are increasingly confident that a new record high is only a matter of time.

A market researcher known as Jackis flagged a rare phenomenon: bitcoin’s volatility recently fell to its lowest since 2023.

#Bitcoin is hitting the lowest volatility since 2023 & levels it only hit 7 times in history

Here is what happened each time at these levels

Explosion in volatility is coming up at max in 5 weeks if not sooner, that’s for sure ? pic.twitter.com/q28uEqXBax

— JACKIS (@i_am_jackis) July 2, 2025

“Every time we reached these levels, within five weeks (and sometimes sooner) there followed a powerful spike in volatility”, Jackis observed.

The technical analyst known as Titan of Crypto drew attention to a bullish MACD crossover on the daily chart. He called it a strong momentum signal and noted that bitcoin is trying to break out of a “bull flag” pattern. A successful breakout could target $137,000.

Altcoins emerge from the shadows as Ethereum gathers pace

Ethereum and other altcoins stirred alongside bitcoin. ETH gained more than 8% over the past 24 hours, surpassing $2,600.

Grayscale’s head of research, Zach Pandl, told Decrypt he expects new highs across many tokens in the second half of the year, despite valuations remaining within recent ranges.

“Recent approvals of crypto-ETPs may have increased investor confidence that capital from traditional finance will start to flow into altcoins,” the analyst said.

He noted that growing regulatory clarity in the US is likely attracting more users and capital to the crypto ecosystem.

“Today bitcoin is like a passenger in the back seat, and the market is being driven by altcoins”, Pandl added.

CryptoQuant analyst Carmelo Aleman is optimistic about Ethereum.

According to him, accumulation addresses that meet strict criteria (not owned by centralised exchanges, with minimal or zero ETH withdrawals) hit an all-time record.

As of 30 June, they held about 22.75 million ETH, up 35.97% over the month.

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

Aleman also noted a new all-time high in liquid-staking volume — 35.56 million ETH. He attributed this to most accumulation addresses belonging to institutional investors, ETFs and large holders, who opt for liquid-staking yield while awaiting a price rise.

“This indicates that the market may be preparing for significant ETH growth in the near future,” the expert concluded.

Earlier, corporations outpaced ETFs in bitcoin purchases for a third consecutive quarter.

Experts pointed to the reason for bitcoin’s prolonged stay around $100,000.