Bitcoin Stabilizes Above $100K While Altcoins Decline Amid Profit-Taking
The crypto market paused on Thursday as traders took profits after a strong rally. Key points include:
- Bitcoin price fluctuated, dropping to $101,000 before rebounding to above $103,000.
- CoinDesk 20 Index decreased by 3%, with altcoins like Aptos, Avalanche, and Uniswap dropping 6%-7%.
- Analysts see the pullback as part of a medium-term uptrend, attributing it to profit-taking amid low liquidity.
- Market sentiment shifted after the China-U.S. tariff delay, impacting riskier assets including BTC.
- Overall price action remains healthy, with no immediate signs of a peak.
- BTC recently exited a long period of below-neutral funding rates, indicating defensive positioning.
- Support for the crypto rally is linked to growth in private credit, particularly in the U.S. and Europe, rather than central bank reserve injections.
- Indicators suggest improving global financial conditions into summer, driven by a weakening U.S. dollar.
- Expectations for market dynamics may change post-July, with potential challenges ahead.
