After a turbulent period marked by "forced selling" in Germany and the anticipated Mt. Gox repayments, Bitcoin is showing signs of recovery. The cryptocurrency has reclaimed ground above the $62,000 mark. Analysts believe the worst of the selling could be over, and these events have been largely priced in.
Bitcoin Bounces Back
Bitcoin (BTC) has experienced a 5.2% rally in the last 24 hours, rebounding from two-month lows of $53,500 on July 4. As of now, BTC is trading at $62,745, according to CoinpediaMarkets data. This resurgence has sparked a wave of optimism among market participants.
Altcoins Join the Rally
The bullish momentum in the crypto market hasn't been limited to Bitcoin. Other top cryptocurrencies like Ethereum (ETH), Solana (SOL), and XRP have also seen significant gains. Ethereum has breached the $3,200 price level, while other altcoins have gained between 1% and 5%. The global crypto market cap has risen by 2.92%, reaching $2.26 trillion, with total market volume surging 16.83% to $55 billion.
Bitcoin Dominance Rises
Despite the altcoin rally, Bitcoin's dominance has increased by 0.20% to 53.71% over the past day. Breaking through the $60,000 resistance has bolstered optimism about Bitcoin's future price movements.
Fear and Greed index also neutral at 52 as per latest data.
Macro Environment Eases
Lower-than-expected inflation figures in the US and the potential for reduced interest rates are seen as strong catalysts for the crypto market. Analysts note,
"Inflation came out lower than expected, and expectations that the Fed will start cutting rates got a boost. The market is now expecting the first-rate cuts as soon as September."
Future Outlook
While the recent rally is encouraging, any substantial upward movement in Bitcoin's price will take time. Analysts predict that BTC will likely oscillate between $55,000 and $65,000 until the Federal Reserve actually implements rate cuts. The journey to higher prices won't happen overnight, but the current macroeconomic trends provide a promising outlook for Bitcoin's future.
