Bitcoin buyers turned a blind eye to a wave of bad news hitting the ecosystem over the last ten days. The price of Bitcoin surged past $65,000 in early Monday trading this week, reinforcing a positive trend that has recorded gains of nearly 3% over the past week.
This price increase comes amid internal technical conditions that are far from safe. The Bitcoin network is currently being tested by a series of issues, ranging from the fourth wave of Coldcard wallet sweeps, a critical vulnerability in the BTCPay Server system that drains balances in Lightning nodes, to a stalled BIP-110 chain fork issue. However, market participants chose to ignore these internal risks and continued to push the price ceiling upward.
A Breath of Fresh Air from Macroeconomic Data
The optimism supporting the current crypto price momentum is rooted in the stock market and expectations regarding the direction of US economic policy. The S&P 500 index recently hit a new all-time high following Friday’s weaker-than-expected US jobs report. The easing employment numbers immediately reduced market fears that the Fed would hike its benchmark interest rate again.
Improving investor risk appetite is also reflected in global stock markets. The MSCI All Country World Index rose 0.1%, an achievement marking the seventh increase in the last eight trading sessions. At the same time, the US 10-year treasury yield rose by 1 basis point to reach the 4.66% level.
Even so, unresolved geopolitical tensions add a layer of risk for global financial markets. The Brent crude benchmark price rose 1% to touch $84.40 per barrel. This commodity price surge was triggered by Iran’s rejection of negotiation offers, compounded by the conditions in the Strait of Hormuz, which remains closed to this day.
All Green Except XRP
While Bitcoin prices and stock markets advanced in tandem, a different condition plagued the second-tier crypto assets. XRP became the only large-capitalization crypto asset to register in the red. The coin slipped 0.4% toward the $1.03 price mark. That daily correction rounded XRP’s losses to minus 4% when calculated over the past week.
Sluggish movement was also seen in several other tokens. The Hyperliquid coin HYPE recorded a daily correction of 1% to the price of $54, although it still posted a remaining gain of 3% on a weekly basis. Meanwhile, the meme coin Dogecoin failed to follow the rally trend, with its price held below the 7-cent mark.
The next test for the Bitcoin rally will come on Wednesday at 8:30 AM ET, when the US government releases consumer inflation (CPI) data for July. This data will be the proving ground - whether today’s stock and crypto market euphoria has a solid footing, or is merely a premature reaction to the jobs data.
As reported by CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
