Macro crypto currency market outlook

Bitcoin remains confined to a very healthy uptrend, extending to yet another record high in May. The push to a fresh record high beyond $110,000 opens the door for the next measured move upside extension targeting $145,000 in the weeks ahead.  Look for setbacks to be well supported into the $100,000 area, with only a break back below $93,000 to take the immediate pressure off the topside.

The cryptocurrency market has elegantly overcome its early-year hurdles, gaining strong momentum through Q2 and set to close the quarter on a high note following an impressive April and May. Bitcoin reached a new all-time high, closing May up over 10%, while Ethereum shone brightly, soaring nearly 40% amid renewed investor optimism. Favorable regulatory advancements, including clearer US guidelines for crypto custody and ETF approvals, have significantly strengthened confidence, further supported by an improved sentiment in traditional risk assets, fueled by easing tariff concerns and sustained expectations of Federal Reserve rate cuts.

Two key developments this quarter have amplified the market’s upward trajectory. Investors are increasingly appreciating bitcoin’s ability to stand independently, often outperforming when equities face pressure, solidifying its role as a portfolio hedge and alternative investment. Additionally, Ethereum’s strong outperformance relative to bitcoin, with signs of a potential bottom in May, points to a promising shift; historical patterns indicate that declining bitcoin dominance frequently sparks broader demand across the crypto asset class, fostering an optimistic outlook for the market’s future.