Bitcoin (BTC) surged to $110,200 on Binance on July 3, marking a 12% rebound from June lows and breaking out of a prolonged downtrend. The rally followed a $407.78 million daily inflow into spot Bitcoin ETFs on July 2, reversing a $342 million outflow from the previous day. CryptoQuant data revealed a simultaneous 10% spike in BTC speculative interest, indicating leveraged positions amplified the move.
Earlier volatility saw BTC dip to $105,000 on July 1 after Federal Reserve Chair Jerome Powell’s hawkish comments at an ECB forum, where he cited tariff-driven inflation concerns and emphasized a “data-dependent approach” to rate cuts. This triggered $252 million in liquidations before prices recovered. Analysts remain divided: Joshua Deuk of Mozaik Capital cited eased Middle East tensions and potential September Fed cuts as tailwinds but predicted range-bound trading until autumn. Conversely, Santiment warned of retail FOMO-driven instability, while Arthur Hayes foresaw a “liquidity squeeze” potentially dragging BTC to $90,000.
Altcoins mirrored BTC’s volatility, with Cardano (ADA) up 8%, Litecoin (LTC) rallying 9%, and memecoin Bonk (BONK) soaring 20%. However, ETH struggled below $2,500 and Solana (SOL) faced resistance at $150. QCP Capital noted “soft native sentiment” favoring accumulation, with CoinGlass identifying key BTC liquidity levels at $103K (support) and $109K (resistance).