Bitcoin is expected to break its all-time high this month, as optimism about the macroeconomic outlook continues to support risk assets, including cryptocurrencies, according to experts quoted by Decrypt on Sunday.
Weekend gains helped offset last week’s losses, with Bitcoin rising 4.5% since Saturday’s open, nearing its July 14 peak of $122,838, according to CoinGecko data.
Open interest grew by 7,834 BTC, alongside increases in both spot and perpetual trading volumes, according to derivatives platform Coinalyze, with signs that the rally was driven mainly by speculative long positions.
Sean Dawson, head of research at options platform Dervie, told Decrypt: “There’s still plenty of fuel left for this rally,” adding that Bitcoin is expected to reach “$150,000 before year-end” based on volatility data.
The cryptocurrency rally followed a surge in tech stocks last week, coinciding with investor optimism over potential US interest rate cuts and a weaker dollar.
Crypto-focused newsletter Ecoinometrics noted in a Sunday post on X that the growing correlation between the Nasdaq and Bitcoin “explains the recent price action.” It added: “Bitcoin may be digital gold, but it trades like a high-risk asset. What really matters is whether markets are in a risk-on or risk-off mode.”
Markets are now turning their attention to Tuesday’s July Consumer Price Index report, with economists expecting a 10-basis-point rise in annual inflation to 2.8%.
A lower-than-expected reading could boost expectations for a Federal Reserve rate cut as early as September.
Dawson said: “We’re seeing a convergence of economic and political factors that can drive prices higher,” adding: “Cryptocurrencies tend to perform well in low interest rate environments.”
However, Dawson also pointed to growing demand for put options, reflecting increased concern over a possible upside surprise in inflation data, which could cause “a minor panic” and lead to “a sharp drop.”
Bitcoin and Crypto Get a Regulatory Boost from the US
Bitcoin posted strong gains in the second half of last week after US President Donald Trump signed an order directing regulators to allow retirement and savings plans, such as 401(k)s, access to alternative assets and private equity investments, including cryptocurrencies.
The move opens the door to a new source of institutional demand for digital assets, amid growing institutional interest.
The largest US Bitcoin ETFs saw three consecutive days of strong inflows following Trump’s order, which coincided with a sharp rally in Bitcoin prices. However, much of the recent crypto gains occurred over the low-liquidity weekend, raising questions about the sustainability of current price levels.
Trump’s order last week followed a series of pro-crypto regulatory moves by his administration in recent months, including the passage of a bill establishing a regulatory framework for stablecoins.
Rumble Weighs $1.2 Billion Bid for Tether-Backed Northern Data
US-listed video platform Rumble Inc. (NASDAQ: RUM) said Sunday it is considering a $1.17 billion offer to acquire German AI company Northern Data AG (F:NB2).
Tether, the world’s largest stablecoin issuer, is Northern Data’s biggest shareholder and could become Rumble’s largest shareholder if the deal goes through.
Rumble said it is considering offering 2.319 shares for each Northern Data share, equivalent to $18.3 per share and valuing the deal at $1.17 billion.
It added that Tether could also become one of Rumble’s largest customers if the deal proceeds, with a multi-year commitment to purchase processors from the company. However, Rumble stressed that the offer is still preliminary and not yet final.
