Experts remain cautious despite the early week Bitcoin pump.
- The crypto market rebounded amid ongoing U.S.-China trade talks in London. Swissblock cautioned of low liquidity and profit-taking if BTC fails to break above $112K.
Bitcoin [BTC] briefly retested $110K on the 9th of June following a short squeeze that lifted the market, especially the DeFi segment and memecoins.
The renewed U.S.-China trade talks triggered the early week run-up, noted crypto trading firm QCP Capital.
“BTC rallied from $107K to over $110K overnight on renewed optimism around US–China trade talks in London. Initial headlines suggested progress, sparking a euphoric move. But without concrete breakthroughs, global risk assets quickly pulled back.”
Why is crypto up today?
Source: CoinMarketCap
At press time, BTC traded at $109.4K, with Ethereum [ETH] recording the largest upswing of 7%. ETH jumped from $2.5K to $2.7K, underscoring relative strengthening and outperformance against BTC.
SOL bounced 3%, and the rest of the large caps like Binance [BNB] and Ripple [XRP] performed negligibly.
Across mid-cap assets, DeFi led with Aave [AAVE] pumping 17% to $296 while Uniswap [UNI] bounced 13% to $7. The highlight of mid-cap assets was Hyperliquid [HYPE].
HYPE surged 15% to $41, bringing Q2 recovery gains to 340%.
On the memecoin front, Fartcoin [FARTCOIN] and dogwifhat [WIF] pumped 13% and 14%. Most of the rally was concentrated on the DeFi and memecoin tokens.
That said, the uptrend could continue in case of a positive outcome in the U.S.-China trade talks. Besides, Wednesday’s U.S. inflation data could add to market volatility, noted QCP Capital.
But the trading firm singled out ETH as poised for positive momentum, citing macro tailwinds, options market positioning and increased ETF demand. QCP added,
“Macro tailwinds are building for $ETH. The GENIUS Act is progressing in the US Senate, Circle’s IPO is back in focus, and stablecoins are gaining regulatory clarity. Ethereum’s role as the infrastructure layer for real-world assets is gaining serious traction.”
Even so, Swissblock cautioned that overall liquidity has stalled despite the Monday pump.
“Yes, without fresh inflows, Bitcoin may be running ahead of conviction. And yes, the ‘double top’ FUD is coming if $BTC fails to break out.”
Source: Swissblock/X
Overall, BTC and the broader market could trend in any direction in the short term, depending on upcoming macro updates.
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