Bitcoin held around $64,300 over the past week, gaining approximately 3.3% but still down nearly 27% for 2026. Ethereum advanced to nearly $1,860, marking a 40% year-to-date increase, the strongest among major cryptocurrencies.
Market Movement and Influences
The week started with a softer inflation report in the U.S., briefly lifting Bitcoin above $65,000 and Ethereum past $1,900, as hopes for a dovish Federal Reserve grew. However, renewed U.S. airstrikes against Iran and the closure of the Strait of Hormuz led to rising oil prices and reduced risk appetite, bringing crypto prices back down.
Bitcoin dominance steadied near 57%, with daily trading volumes close to $36 billion. Sentiment has improved from June’s lows dubbed "Extreme Fear," yet remains vulnerable. Spot Bitcoin ETFs experienced record outflows in June totaling $4.5 billion, the worst on record, but flows partially reversed in early July. Market watchers expect a sustained week of net inflows to potentially signal renewed confidence.
Ethereum Outperforming Bitcoin Amid Macro Challenges
Ethereum's continuous outperformance is linked to its historical role as a recovery leader and current technical momentum. It has reclaimed significant moving averages and is approaching resistance near the 100-day EMA at $1,944. By contrast, Bitcoin’s struggles in 2026 largely stem from macroeconomic factors and ETF outflows rather than inherent fundamental weaknesses.
Fed Chair Kevin Warsh’s June statements indicated the possibility of a rate hike this year, strengthening the dollar and shifting capital flows toward AI-related stocks. This dynamic has dampened Bitcoin’s demand, which relies heavily on ETF inflows as a structural support.
Outlook for the Coming Week
The coming week’s schedule will be critical for crypto markets as investors watch for developments in ETF flows and macroeconomic signals. The ongoing geopolitical tensions and their impact on risk assets are also points of attention.
This material is for informational purposes and should not be considered financial advice.
