Bitcoin Holds Steady Above $106K as Ethereum Eyes $2.6K: Crypto Market Rebounds Amid Fed Optimism

The global cryptocurrency market staged a modest rally on Tuesday, with Bitcoin (BTC) consolidating above $106,000 and Ethereum (ETH) approaching key resistance levels near $2,600. The broader digital asset market capitalization rose by 1.23% over the past 24 hours, reaching approximately $3.28 trillion, according to CoinMarketCap data.

Traders appear to be growing increasingly optimistic as institutional inflows continue into spot crypto ETFs and macroeconomic pressures—particularly inflation—show signs of easing. The upcoming U.S. Federal Reserve decision, widely expected to maintain interest rates with potential cuts in July, has further fueled positive sentiment across the crypto sector.

Bitcoin Holds Firm Above $106K

Bitcoin was trading at $106,440 as of press time, marking a 0.7% intraday gain, with daily price movements ranging between $104,854 and $106,703. The asset’s total market capitalization now stands at approximately $2.12 trillion, reinforcing Bitcoin’s dominance at nearly 64.5% of the overall crypto market.

The flagship cryptocurrency has found solid technical support around the $105,000 level. Analysts suggest that if this support holds and macroeconomic trends remain favorable, BTC could retest resistance zones in the $110,000 to $115,000 range in the near future.

“Bitcoin’s net exchange flows have turned significantly negative,” noted analysts at Amina Bank. “When BTC moves off exchanges, prices tend to rise, and we’re seeing daily outflows averaging 72,000 BTC.”

The bullish sentiment is further supported by increasing speculation around a potential U.S. Strategic Bitcoin Reserve, which has reportedly accumulated over 200,000 BTC since March 2025. This move, coupled with continued institutional investment via spot ETFs, has helped anchor investor confidence.

“We expect Bitcoin to reach $225,000 by the end of the year, driven largely by ETF demand and policy tailwinds,” said equity analysts at H.C. Wainwright in a research note on Monday.

Ethereum Climbs Toward $2,600

Ethereum also posted strong gains, trading at approximately $2,445, up 0.8% over the past 24 hours. ETH ranged between $2,386 and $2,474 intraday, supported by a market cap just under $295 billion.

The recent “Pectra” protocol upgrade, which introduced validator performance improvements and enhanced scalability, has renewed optimism around Ethereum’s long-term growth. Coupled with increased institutional exposure via Ethereum ETFs, the asset is now poised to test higher resistance levels in the $2,600 to $2,700 zone.

“ETH’s ecosystem continues to mature,” said blockchain analyst Lydia Zhang. “From DeFi to NFTs and enterprise solutions, Ethereum is becoming indispensable to the Web3 infrastructure stack.”

Altcoins Show Mixed Momentum

Other major altcoins recorded modest gains:

• BNB rose 0.7% to $645, benefiting from continued DeFi and staking activity within the Binance Chain ecosystem.
• XRP gained 0.3% to $2.18, supported by its growing adoption in cross-border payments and clarity from recent legal decisions.
• Cardano (ADA) inched up 0.6% to $0.58, with investors awaiting scalability improvements under its upcoming Basho era.
• Solana (SOL) maintained its position around $145, holding steady as one of the top-performing Layer 1 networks in 2025.

Hyperliquid (HYPE) Volatile but Trending Upward

The native token of the Hyperliquid decentralized perpetuals exchange, HYPE, climbed to $38.34, up roughly 3.6% in the past day. After peaking at nearly $45 earlier this month, the token experienced a sharp correction but has since bounced back from support near $31.

While some analysts forecast a potential move toward $45 if current volume persists, others have issued short-term caution.

“HYPE price continues to soar, and a new all-time high looks to be right around the corner,” according to crypto market tracker 99Bitcoins.

However, CoinCodex analysts predict a pullback to around $29 by the end of the week, citing overheated indicators.

Meme Coins See Modest Rebounds

Speculative favorites Bonk (BONK) and Floki (FLOKI) both recorded gains amid renewed retail interest:

• BONK rose 1.1% to $0.00001405, supported by ongoing buzz in the Solana NFT community.
• FLOKI gained 2.3% to $0.00007406, driven by developments in its education, gaming, and decentralized finance initiatives.

Both tokens remain highly sensitive to social media sentiment and community-driven hype cycles.

Fed Signals Rate Pause, Possible Cut in July

The U.S. Federal Reserve is expected to keep interest rates unchanged in its June meeting, but dovish commentary from Fed officials has raised expectations for a July rate cut, particularly if inflation continues to cool.

“CPI and PCE data have shown encouraging trends,” noted Fed Governor Michelle Bowman. “We will continue to monitor inflation closely, and July may present an opportunity to act if the data aligns.”

Such a shift in monetary policy would be bullish for risk assets, especially cryptocurrencies, which have historically benefited from looser financial conditions.

Regulatory Tailwinds and Institutional Adoption

In addition to macroeconomic drivers, regulation and institutional interest remain key factors in the current market rally:

• The U.S. Senate recently advanced the GENIUS Act, which outlines reserve requirements and transparency measures for stablecoins.
• The European Union’s MiCA regulation, fully enforced since December 2024, continues to attract regulated entities into crypto.
• Major asset managers like BlackRock, Fidelity, and Franklin Templeton have seen surging volumes in their spot crypto ETFs.

Family offices are also increasing their exposure. A recent survey by JPMorgan reveals that nearly 40% of family offices now hold digital assets, with average allocations around 2–5% of total AUM.

Outlook: Strategic Consolidation or Next Leg Up?

The crypto market is currently undergoing a period of strategic consolidation, analysts say, with major assets forming strong bases and altcoins preparing for possible breakouts.

“We’re not in a mania phase yet,” said CoinShares chief strategist Meltem Demirors. “This feels more like the calm before another major bull run.”

With macro tailwinds, institutional inflows, and technical setups aligning, the conditions appear ripe for continued momentum heading into Q3 2025.