Here Are The Top 4 Reasons Why Crypto Is Going Up

Key Insights:

• Crypto is going up today, with Bitcoin surging to $110,000.
• ETF data shows that there is robust institutional demand for crypto ETFs.
• The House will pass Trump’s Big Beautiful Bill.

Bitcoin and other crypto tokens soared on Thursday, July 3, raising hopes of an imminent rally. This article explores potential reasons why crypto is going up and whether the rally has more upside.

ETF Inflows and Institutional Demand Explain Why Crypto Is Going Up

Institutional demand is surging, driving strong buying activity across Bitcoin and altcoins. This rising interest from major financial players is a key reason why crypto is going up.

For example, the newly launched REX-Osprey SOL Staking ETF (SSK) had over $33M in trading volume on the first day. In a note, Bloomberg’s Eric Balchunas estimated that the fund will end the week with over $10 Million in assets.

Spot Bitcoin and Ethereum ETFs have also added assets in the last few months. Bitcoin ETFs now hold $136 Billion in assets, representing 6.30% of Bitcoin’s market cap. Their cumulative ETFs are now nearing $50 Billion.

Spot Ethereum ETFs have recorded inflows for eight weeks, signaling sustained investor interest. Their total cumulative inflows have now surged to $4.2 Billion.

Further, companies like Strategy, Metaplanet, MARA Holdings, and GameStop have continued accumulating Bitcoin. As a result, the soaring Bitcoin demand and falling supply on exchanges have contributed to the crypto market rally.

Federal Reserve interest rate cut hopes

The other possible reason why crypto is going up is growing optimism around a potential Fed rate cut in September. This expectation fuels demand for crypto assets, contributing to the recent price surge.

In a statement in Europe this week, Jerome Powell did not rule out cutting in July if economic data allows. Polymarket, Kalshi, and futures data show that the odds of a cut in September have jumped to over 85%.

Moreover, Goldman Sachs analysts estimate three cuts this year, while Morgan Stanley sees it cutting seven times in 2026. Most importantly, Donald Trump intends to nominate a Fed Chair who will be inclined to cut rates.

Bitcoin, altcoins, and the stock market do well when the Federal Reserve cuts interest rates. This happens as investors rotate from low-yielding government bonds to riskier assets with high opportunity costs.

A good example of this is what happened during the pandemic when the Fed slashed interest rates and launched quantitative easing. That action and the US stimulus pushed crypto prices to a record high.

Big Beautiful Bill Progress

Donald Trump is poised for a major political win as the House prepares to vote on the Big Beautiful Bill. This momentum is boosting investor confidence, which is why crypto is going up. After lengthy negotiations, Speaker Mike Jonson confirmed that he had the votes.

While the bill has no crypto provisions, it will likely benefit the industry in at least two ways. First, there will be broad and specific tax cuts, like tips and overnight work.

Tax cuts and deregulation may boost the stock market because they will offset the impact of tariffs. Crypto prices often rally when the stock market is gaining.

Second, some of the tax cut winners may opt to allocate some of their excess cash. They can allocate to assets like stocks and the crypto market.

Bitcoin Price is Nearing a Breakout

The crypto market is increasing because Bitcoin has formed two highly bullish chart patterns. This could lead to a significant breakout. The daily chart shows that a bullish flag pattern, comprising a long vertical line and a descending channel, has been formed.

It moved above the flag section, likely confirming a bullish breakout. Bitcoin also formed a cup-and-handle pattern, with the upper side at $109,300. This pattern had a depth of 31%.

As such, measuring the same distance from the cup’s upper side gives the target price at $144,245. A Bitcoin rally often leads to more altcoin gains.

Institutional investors are pouring money into crypto, boosting prices across the market. Expectations of Federal Reserve rate cuts are fueling optimism and risk-on sentiment.

Trump’s financial bill adds momentum, reinforcing why crypto is going up. They are also jumping as Bitcoin price forms bullish patterns that point to more gains.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.