Bitcoin Hits New All-Time High Amidst Global Economic Uncertainty

The past week presented a mixed bag of macroeconomic signals, featuring an interest rate cut in Australia, higher-than-expected inflation in the United Kingdom, and neutral commentary from Federal Reserve Chairman Jerome Powell. Despite this instability, the S&P 500 managed a 1% gain, fueled by optimism surrounding economic data, which in turn boosted the cryptocurrency market.

Bitcoin surged to a new record high, trading at US$111,800, solidifying the positive trend observed since mid-May.

Geopolitical Tensions and Political Crypto

Geopolitically, the week was marked by renewed tensions between Russia and Ukraine. Temporarily suspended trade tariffs between the US and the European Union also made headlines. Furthermore, a dinner hosted by Donald Trump, funded by memecoin donations, raised concerns about the use of cryptocurrencies as a political tool.

Institutional Investment Drives Bitcoin’s Rise

The surge in Bitcoin’s price was largely supported by strong institutional inflows, with spot Bitcoin ETFs reaching US$44.4 billion in allocations. In the futures market, the Long/Short Ratio remains at 0.58, indicating a prevalence of short positions and the potential for liquidations that could further accelerate the upward trend.

Altcoin Season on the Horizon?

The altcoin market is beginning to show signs of activity, particularly if Bitcoin remains stable between US$106,000 and US$110,000. Bitcoin’s dominance remains high at 63.8%, while the Altseason indicator sits at 18 points, suggesting room for a new liquidity cycle. The outlook is constructive, but selective, with a focus on projects with strong fundamentals.

Bitcoin Technical Analysis: Key Levels to Watch

Technical analysis of Bitcoin points to several potential scenarios:

• A break above US$112,000 could lead to further gains in the range of US$116,000 to US$122,000.
• Consolidation between US$106,500 and US$110,000 reinforces the support zone.
• A drop below US$106,000 could trigger a test of US$101,000.
• A break below US$101,000 projects targets between US$97,400 and US$93,700.

The bullish bias remains intact as long as the monthly close stays above US$97,400.

Ethereum’s Outlook

Ethereum maintained support above US$2,000, with technical targets at US$2,700 and US$2,800.