What’s Driving the Cryptocurrency Trading Volume Comeback?

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Cryptocurrency markets are showing strong signs of resurgence, with trading volumes and asset prices climbing back to notable levels. On July 3, 2025, Bitcoin surged to a three-week high, briefly surpassing $110,000. This rally coincided with global M2 money supply exceeding $55 trillion—a record all-time high (ATH)—highlighting a renewed influx of liquidity into risk assets like digital currencies.

Ethereum and major altcoins also delivered bullish signals, suggesting broader market momentum beyond just Bitcoin. As investor confidence returns, analysts are identifying key macroeconomic, regulatory, and technical factors fueling this revival.

👉 Discover how global liquidity is reshaping crypto markets today.

Market Overview: Macro Liquidity Fuels Momentum

Bitcoin's price action on the hourly BTC/USDT chart across major exchanges reflects growing bullish sentiment. According to Rachel Lucas, a seasoned cryptocurrency market analyst, the recent surge is closely tied to expanding macroeconomic liquidity.

“While increased money supply doesn’t always immediately impact prices, it eventually flows into risk-on assets like cryptocurrencies—with a time lag.”

Lucas emphasizes that while liquidity provides a foundation, sustained momentum requires ongoing catalysts. These could include clearer signals from the U.S. Federal Reserve on future interest rate policy or continued institutional inflows through regulated investment vehicles such as ETFs.

“It’s institutional capital quietly driving this rally. For a decisive breakout to new all-time highs, that support must continue.”

The interplay between macro liquidity and investor behavior is becoming increasingly evident. With central banks showing dovish tones and inflation pressures easing, markets are pricing in potential rate cuts—boosting appetite for higher-yielding, growth-oriented assets like crypto.

ETF Flows and Shifting Investor Sentiment

Exchange-traded funds (ETFs) have emerged as a critical barometer of institutional interest. On July 1, spot Bitcoin ETFs recorded outflows for the first time in 15 days—initially sparking concerns about weakening demand. However, this dip was short-lived.

By July 2, net inflows into Bitcoin ETFs rebounded sharply, reaching an all-time high. This sudden reversal signaled strong underlying demand and helped propel Bitcoin’s price upward once again.

This pattern underscores a maturing market: short-term volatility in flows no longer triggers prolonged sell-offs. Instead, dips are quickly absorbed by resilient buying pressure—often from long-term investors and institutions.

👉 See how ETF inflows are shaping the next phase of crypto adoption.

Key Catalysts Behind the Resurgence

Several developments are contributing to renewed optimism in the crypto space:

Together, these factors are creating a favorable environment for digital assets—not just in terms of price but also in long-term structural adoption.

Analyst Insights: Volatility Lull and Technical Breakouts

Market researcher Jackis has identified a rare phenomenon: Bitcoin’s volatility recently hit its lowest level since 2023.

“Every time we’ve seen volatility this low in the past, we’ve experienced a sharp spike within five weeks—sometimes even sooner.”

Low volatility often precedes explosive price movements. Historically, such conditions have been followed by strong directional moves as pent-up market energy is released.

Meanwhile, technical analyst Crypto Titan points to a bullish MACD crossover on Bitcoin’s daily chart—a strong momentum signal. He also notes that BTC is attempting to break out of a bullish flag pattern. A confirmed breakout could set the stage for a rally toward $137,000.

These technical indicators, combined with strengthening fundamentals, are reinforcing bullish expectations among traders and analysts alike.

Altcoins Emerge as Ethereum Gains Momentum

While Bitcoin remains a market leader, altcoins are beginning to take center stage—led by Ethereum’s strong performance. Over the past 24 hours, ETH surged more than 8%, breaking above $2,600.

This rally suggests growing confidence in Ethereum’s ecosystem and its role in decentralized finance (DeFi), NFTs, and layer-2 scaling solutions.

Zach Pandl, Head of Research at Grayscale, believes many tokens could reach new highs in the second half of 2025.

“Recent approvals of cryptocurrency ETPs may boost investor confidence that traditional financial capital will start flowing into altcoins.”

Pandl also highlights increasing regulatory clarity in the U.S. as a key driver. Clearer rules reduce uncertainty, encouraging more users and institutional capital to enter the crypto ecosystem.

“Bitcoin feels like a backseat passenger right now—altcoins are leading the charge.”

Ethereum’s Accumulation Trend Signals Strength

Carmelo Aleman, a respected crypto expert, highlights a powerful accumulation trend in Ethereum. His analysis focuses on addresses that meet strict criteria: non-exchange wallets with minimal withdrawals—indicative of long-term holders and institutions.

As of June 30, these addresses held approximately 22.75 million ETH—an increase of 35.97% for the month alone.

The average purchase price for these addresses was $2,114.70 as of July 1. With ETH now trading around $2,600, these holders are already sitting on gains exceeding 23%.

Aleman notes that total liquid ETH supply stands at about 35.56 million. The fact that so much ETH is being held off exchanges suggests strong conviction in future price appreciation—especially among large investors and ETFs.

👉 Learn how smart money is positioning in Ethereum ahead of the next cycle.

Frequently Asked Questions (FAQ)

Q: What caused Bitcoin to surpass $110,000 in July 2025?
A: A combination of macroeconomic liquidity growth (M2 supply hitting $55T+), strong ETF inflows after a brief pause, and improving investor sentiment driven by potential Fed rate cuts contributed to Bitcoin’s surge.

Q: Are altcoins outperforming Bitcoin?
A: Yes—while Bitcoin remains strong, Ethereum and other major altcoins have shown accelerated momentum recently. Analysts attribute this to growing institutional interest and ecosystem development beyond BTC.

Q: How do ETF inflows affect cryptocurrency prices?
A: Sustained ETF inflows signal strong institutional demand. They increase buying pressure and reduce available supply in the market, often leading to price appreciation over time.

Q: Why is low Bitcoin volatility significant?
A: Historically, periods of extremely low volatility have preceded major price breakouts. When markets consolidate tightly, they often explode in one direction—typically upward during bull cycles.

Q: What role does regulation play in crypto’s resurgence?
A: Regulatory clarity—such as Ripple’s federal banking application and U.S. ETP approvals—reduces uncertainty and encourages traditional finance players to allocate capital into digital assets.

Q: Is Ethereum accumulation a bullish sign?
A: Absolutely. When long-term holders and institutions accumulate ETH off exchanges, it reduces circulating supply and signals confidence in future price growth—a classic accumulation phase before major rallies.

Core Keywords:

With strong fundamentals, improving technicals, and growing institutional participation, the crypto market appears poised for further gains in 2025. Whether through ETFs, regulatory progress, or on-chain accumulation trends, the ecosystem is maturing—and attracting capital at an accelerating pace.