Crypto Wakes Back Up Again – This Rally Needs to Pass a Few Big Tests

Today feels like a million miles away from how we were feeling a week ago. Bitcoin’s return to over $63,000 to the point it had broken the June slump has seen some hope return to the market. But what actually caught my eye was a steep fall from meme coin dominance to the lowest since January of this year.

This suggests to me traders are actually moving money back into more solid assets rather than just the hype.

If this can continue and play out, it will make for a much more solid next few months. Looking outside of crypto, we are still seeing mixed signs on the macro side of things, gold holding above $4200 indicates continued demand for the safety haven, while the selloff in the South Korean stock market tells us the market is not back to full risk appetite just yet. News of Nvidia being forced to push its new AI infrastructure back to Q4 suggests this industry is heading to the stage where it is now execution driven and not just expectation driven. The regulatory scene is still a bit in limbo with the next hurdle coming on the back of the Clarity Act next month with reports saying its now July 31st.

We should expect this to be the key catalyst for crypto this summer, in my personal view and will be watching policy for this.

Overall, I remain cautious optimistic. I need to see bitcoin and many alt coins defend these levels now after the move from below $60,000 in just a day, to really be confident in the move higher but we shall see how the rest of the week pans out for bitcoin and others… What are your thoughts do you think bitcoin breaching 63,000 signals the start of a fresh bullish cycle or are we headed lower in a test of recent lows for this latest bear cycle?

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