Crypto Market Rebounds on Key Developments
The cryptocurrency market experienced modest yet significant gains on Wednesday, rebounding after two days of volatility. This positive shift followed two major macroeconomic developments: the U.S. Senate’s passage of President Donald Trump’s “One Big Beautiful Bill” (OBBA) and the announcement of a new trade agreement with Vietnam. These catalysts injected fresh optimism into the digital asset space, leading to an uptick across major cryptocurrencies and a general improvement in market sentiment.
Major Cryptocurrencies Post Notable Gains
Leading the market’s upward movement, Bitcoin (BTC) climbed by 3.2% over the past 24 hours, with its price currently trading around $109,400. Ethereum (ETH) saw an even more substantial surge, jumping nearly 6% to reach $2,560. Other prominent altcoins also registered gains, with Solana (SOL) increasing by 3.6% to $153 and XRP rising 3.2% to $2.26. These price movements indicate a broad-based positive reaction to the recent news.
Market Capitalization and Liquidation Overview
The overall cryptocurrency market capitalization reflected this positive trend, rising by 1.3% on the day to reach a total of $3.5 trillion. Despite the gains, leveraged liquidations across the market amounted to $343 million, according to data from CoinGlass. Bitcoin led these liquidations with nearly $121 million, followed by Ethereum at $93 million, and other altcoins contributing $31 million, indicating some volatility even amidst the upward price action.
Mixed Signals in Spot ETF Flows
In the realm of U.S. spot Bitcoin exchange-traded funds (ETFs), July 1 saw $342 million in outflows, breaking a 15-day streak of consecutive inflows. This suggests a potential profit-taking or rebalancing by some investors. Conversely, spot Ethereum ETFs experienced nearly $41 million in inflows, as reported by SoSoValue data. This divergence in ETF flows highlights varying investor sentiment and strategic positioning between the two largest cryptocurrencies.
Macroeconomic Factors Driving the Uptick
The market’s positive response is directly linked to the passage of the OBBA, a controversial government spending bill projected to add $3 trillion to the federal deficit over the next decade. The bill narrowly passed the Senate in a 50–50 vote, with Vice President JD Vance casting the tie-breaking vote. Simultaneously, President Trump announced a new trade agreement with Vietnam, which includes a 20% tariff on Vietnamese goods and a 40% “transshipping” tariff, further contributing to the macroeconomic shifts influencing the market.
Expert Insight: Crypto as a Portfolio Diversifier
Mike Cahill, co-founder and CEO of Douro Labs, commented on Bitcoin’s move past $109,000, interpreting it as a signal of a broader shift in institutional sentiment. He told The Defiant that heavy macroeconomic catalysts are “drawing fresh capital back into crypto as a portfolio diversifier.” Cahill emphasized the importance of looking beyond mere price headlines to understand the larger picture, noting the “return of real money seeking macro-hedge exposure unaffected by traditional trading hours.”
Bitcoin’s Correlation with Money Supply and Future Prediction
Kyle Chassé, CEO of MV Global and Founder of PAID, offered a bold prediction, stating that “Washington just wrote itself a record-breaking $5 trillion IOU and every new trillion is free advertising for Bitcoin.” He elaborated that by significantly increasing the debt ceiling, the “Big Beautiful Bill” is poised to unleash a fresh wave of spending that will swell U.S. and global M2 money supply, a metric that has historically tracked Bitcoin’s long-term price almost point-for-point. Based on this analysis, Chassé predicts that Bitcoin will break through $225,000 by the end of the year.
