Key Points
- The crypto market saw a rebound, with Bitcoin briefly retesting $110K and Ethereum recording a 7% upswing.
- Crypto trading firm QCP Capital noted the renewed U.S.-China trade talks as a trigger for the early week run-up.
The crypto market experienced a rebound, with Bitcoin [BTC] briefly retesting the $110K mark on June 9. This was propelled by a short squeeze which lifted the overall market, particularly the DeFi segment and memecoins.
Crypto trading firm QCP Capital attributed the early week run-up to the resumption of U.S.-China trade talks. The firm stated, “BTC rallied from $107K to over $110K overnight on renewed optimism around US–China trade talks in London. Initial headlines suggested progress, sparking a euphoric move. But without concrete breakthroughs, global risk assets quickly pulled back.”
Market Performance
At the time of writing, BTC was trading at $109.4K, with Ethereum [ETH] recording the largest upswing of 7%. ETH jumped from $2.5K to $2.7K, indicating relative strengthening and outperformance against BTC.
Other large caps like Binance [BNB] and Ripple [XRP] performed negligibly, while SOL saw a 3% bounce. In the mid-cap assets, DeFi led with Aave [AAVE] pumping 17% to $296 and Uniswap [UNI] bouncing 13% to $7. The memecoin Fartcoin [FARTCOIN] and dogwifhat [WIF] also experienced a pump of 13% and 14% respectively.
Future Predictions
QCP Capital suggested that the uptrend could continue depending on the outcome of the U.S.-China trade talks and Wednesday’s U.S. inflation data. The firm singled out ETH as poised for positive momentum, citing macro tailwinds, options market positioning and increased ETF demand.
However, Swissblock warned that overall liquidity has stalled despite the Monday pump. The firm stated, “Yes, without fresh inflows, Bitcoin may be running ahead of conviction. And yes, the ‘double top’ FUD is coming if $BTC fails to break out.”
In conclusion, the direction of BTC and the broader market in the short term could be influenced by upcoming macro updates.
