Bitcoin Tops $110K Amid Rally, Eyes on Inflation Data
The Essentials at a Glance
- Bitcoin (BTC) briefly surged above $110,000 – triggered by a short squeeze.
- Reason for the increase: progress in trade talks between the U.S. and China taking place in London.
- Ethereum (ETH) saw the strongest gain at 7% – supported by positive macroeconomic signals.
- DeFi tokens like Aave and Uniswap as well as memecoins showed particularly strong price increases.
- Analysts warn of low liquidity and a potential correction if a BTC breakout fails to materialize.
Background: Why Is the Crypto Market Rising?
The recent rise in the crypto market was driven by a combination of geopolitical developments and market mechanisms. At the center are the resumed trade negotiations between the U.S. and China, taking place in London. Initial reports of progress sparked optimism in the markets and led to a so-called short squeeze in Bitcoin.
A short squeeze occurs when many traders bet on falling prices, but the price suddenly rises. These traders are then forced to close their positions, which drives the price up even further. In this case, Bitcoin climbed from around $107,000 to over $110,000 within a few hours.
Ethereum Shows Relative Strength
While Bitcoin led the surge, Ethereum demonstrated even stronger performance. ETH rose by 7%, from $2,500 to $2,700. Analysts at QCP Capital currently see Ethereum in a favorable position. Reasons include:
- Positive expectations surrounding the regulation of stablecoins.
- Growing demand for Ethereum-based ETFs (exchange-traded funds).
- Progress in the U.S. Senate on the so-called GENIUS Act, which concerns digital assets.
- Ethereum’s role as infrastructure for real-world assets is becoming increasingly important.
DeFi and Memecoins with Significant Price Gains
Particularly notable was the price development of DeFi tokens (decentralized finance applications) and memecoins. The strongest performers included:
- Aave (AAVE): +17% to $296
- Uniswap (UNI): +13% to $7
- Hyperliquid (HYPE): +15% to $41 – with a quarterly gain of 340%
- Fartcoin (FARTCOIN): +13%, dogwifhat (WIF): +14%
This development shows that speculative assets such as memecoins and DeFi projects are once again attracting increased investor interest.
Caution Despite the Rally: Low Liquidity Remains a Risk
Despite the price surge, analysts urge caution. The analysis firm Swissblock points out that market liquidity remains low. Without new capital inflows, the current rally could quickly fade. If Bitcoin fails to sustainably break through the $112,000 mark, Swissblock warns of a so-called “double top” formation – a technical pattern that may indicate an impending correction.
You should read that too:
-
Asian Slots – The Best Asia-Themed Online Slot GamesReading time: ~ 3 minutes
-
Sea Slots – The Best Ocean-Themed Slots
Reading time: ~ 3 minutes
-
Food and Drink Slots: The Best Slot Games Inspired by Culinary Delights
Reading time: ~ 3 minutes
-
Low Wagering Casino Bonuses 2025
Reading time: ~ 3 minutes
-
ArchiveReading time: ~ 3 minutes
Focus on Macroeconomic Data
In addition to the trade talks between the U.S. and China, market participants are focusing on upcoming inflation data from the U.S. These could significantly influence the short-term development of the crypto market. According to QCP Capital, Ethereum in particular could benefit from positive macroeconomic impulses.
Our Assessment
The current market movement shows how sensitive cryptocurrencies are to geopolitical and economic news. The surge was temporarily amplified by a short squeeze, but the fundamentals – especially for Ethereum – appear to be improving. Nevertheless, the situation remains fragile. Without sustainable progress in the U.S.-China talks or positive economic data, the market could come under pressure again. Investors should closely monitor the coming days and wait for clear signals before opening new positions.
Sources
- QCP Capital
- Swissblock
- CoinMarketCap
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | 107810 |
| 24h % | -1.68 % |
| 7d % | 2.64 % |
| 30d % | 5.96 % |
| 60d % | 26.21 % |
| 1y % | 59.87 % |
| Market Cap | $2,143,625,562,137.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
Advertising transparency