What’s Driving Today’s Crypto Surge? – July 3, 2025

The cryptocurrency market is experiencing an upward trend today, following several days of a slight downward movement. Almost all of the top 100 coins by market capitalization have witnessed price increases in the last 24 hours. Concurrently, the total cryptocurrency market capitalization has remained stable at $3.47 trillion. The overall trading volume for crypto is at $120 billion, marking the highest level in recent days.

TLDR:

The cryptocurrency market has moved upward, with dog-themed memecoins performing exceptionally well in both the top 10 and top 100 categories;

BTC has exceeded the $109,500 mark, getting closer to its all-time high;

ETH is the second-best performer of the day among the top 10;

BTC supply in profit surged from 87% to 98% during the last week of June;

Higher profit levels lead to increased market volatility;

US spot BTC ETFs have maintained a positive flow streak, while spot ETH ETFs experienced outflows;

“Any pull-backs are likely to be more about healthy consolidations than the initiation of a deeper reversal.”

Crypto Winners & Losers

All top 10 coins by market capitalization have seen their values rise today.

Bitcoin (BTC) has increased by 2.3%, surpassing the $108,000 mark and now trading at $109,515.

Ethereum (ETH) has achieved the second-highest growth in this category, showing a rise of 6.1% and currently priced at $2,600.

The top performer is Dogecoin (DOGE), which has risen by 7.8%, reaching a price of $0.1742.

Conversely, the smallest increase is seen in Binance Coin (BNB), which has climbed 0.8% to $661.

Eight of the top 100 coins experienced double-digit gains, with Bonk (BONK) leading at 20.8%, trading at $0.00001738.

Yesterday’s top performer, Pudgy Penguins (PENGU), suffered the largest drop, decreasing by 2.2% to $0.01533.

Recently, BONK announced that it is approaching 1 million on-chain holders, a milestone that will trigger the burn of 1 trillion BONK.

Just a reminder:
The Dog will be conducting a burn of 1,000,000,000,000 $BONK when this number reaches 1,000,000 pic.twitter.com/nkzo1QO65y

— BONK!!! (@bonk_inu) July 2, 2025

Meanwhile, BitMEX co-founder Arthur Hayes expressed the view that BTC might decline to the $90,000 level before reaching new peaks.

Arthur Hayes @CryptoHayes forecasts Bitcoin will drop to $90K before bouncing back due to an influx of liquidity from US bank-issued stablecoins. #ArthurHayes #BitcoinPrediction https://t.co/9tk8DoJgCZ

— Cryptonews.com (@cryptonews) July 3, 2025

The market’s rise follows a renewed interest from investors in the sector. Particularly, regarding UK pension funds, Cartwright Pension Trusts has introduced an “Annual Bitcoin Review” for its institutional clients. This initiative follows significant discussions triggered by the company’s disclosure that a client had allocated 3% of their fund to BTC in November 2024, which has since yielded a 60% return.

‘With Elevated Profit Levels Comes Increased Market Volatility’

Gadi Chait, Head of Investment at Xapo Bank, remarked that “Bitcoin’s on-chain metrics continue to highlight the robustness of its current market standing.” According to Glassnode data, BTC supply in profit increased from 87% to 98% between June 22 and June 29. “This is notable and underscores the bullish momentum we have recently witnessed,” Chait states.

He adds: “With these heightened profit levels, a familiar pattern often emerges with digital assets: increased market volatility. Historically, when such a large percentage of supply is in profit, the likelihood of profit-taking rises. This, in turn, leads to short-term market fluctuations even amid a generally optimistic outlook.”

Glassnode indicates that distribution remains subdued and “investors are holding firm.”

As $BTC bounces back to $107k, most holders have regained profitability. However, distribution remains low – investors are holding steady. Realized profits are dwindling, long-term holder supply has reached an all-time high, and ETF inflows continue to be robust. Discover more about this in the latest Week On-Chain: https://t.co/Rc00Ql7P5x pic.twitter.com/g5OIvhk8lD

— glassnode (@glassnode) July 2, 2025

US Federal Reserve funds futures indicate approximately a two-in-three likelihood of a first 25 bp rate cut by September after the Federal Open Markets Committee (FOMC) maintained steady rates in June, Chait mentions.

“All these factors suggest that any pull-backs are more inclined to be healthy consolidations rather than the beginning of a more profound reversal. Nonetheless, this behavior more accurately reflects a healthy, maturing market, demonstrating Bitcoin’s increasing alignment with secure, long-lasting investments capable of withstanding global shocks while also attracting substantial capital,” Chait concludes.

Levels & Events to Watch Next

As of this writing, BTC is trading at $109,515. Throughout the past day, the coin has steadily increased from a daily low of $106,925.

Current resistance levels are positioned at $109,764 and $110,809. If it surpasses both, BTC could potentially break its all-time high. Meanwhile, the existing support level is set at $108,600.

Bitcoin Price Chart. Source: TradingView

Simultaneously, Ethereum is trading at $2,600. It hovered around $2,450 for several hours today before surging to its current value and the intraday high.

Interestingly, the sentiment in the crypto market has improved today. Although it remains within neutral bounds, the Fear and Greed Index rose from 46 yesterday to 54 today. Sentiment dipped briefly into fear territory, but the overall optimism appears to have been revitalized today. Nevertheless, investors are looking for further indications.

Source: CoinMarketCap

Additionally, US BTC spot exchange-traded funds (ETFs) resumed positive inflows after breaking a 15-day streak on July 1. On July 2, they recorded inflows of $407.78 million, with most ETFs experiencing positive flows today, led by Fidelity’s $183.96 million. This amount has contributed to a cumulative total net inflow of $49.04 billion.

In contrast, US ETH ETFs saw outflows today amounting to $1.82 million. While Grayscale, Fidelity, Bitwise, and VanEck experienced positive flows, BlackRock faced a loss of $46.89 million.

Significantly, the first Solana staking ETF in the United States, the REX-Osprey Solana Staking ETF, launched on Wednesday on the Cboe BZX Exchange. It concluded the day robustly, with $12 million in inflows and $33 million in volume.

$SSK ended the day with $33m in volume. It significantly outperformed the Solana futures ETF and XRP futures ETFs (or the average ETF launch), but it is considerably lower than the Bitcoin and Ether spot ETFs. pic.twitter.com/t6LkQwDXLc

— Eric Balchunas (@EricBalchunas) July 2, 2025

On another note, the US Securities and Exchange Commission abruptly halted the approval of the Grayscale Digital Large Cap Fund’s conversion into an ETF, preventing its launch just a day after it had received clearance.

The situation is getting more complex. A higher authority at the SEC has informed $GDLC that it cannot launch until further notice. The reasoning is unclear, but my assumption is they want to establish crypto ETP listing standards before any ’33 act spot ETFs hit the market with these other coins. So likely… https://t.co/Za7rYk1o0E

— Eric Balchunas (@EricBalchunas) July 2, 2025

Quick FAQ

1. Why did crypto move against stocks today?

The cryptocurrency market has seen gains over the past 24 hours, while the US stock market experienced another day of mixed results on Wednesday. For instance, the S&P 500 rose by 0.47%, the Nasdaq-100 increased by 0.73%, and the Dow Jones Industrial Average dipped by 0.024%. This occurs as investors await the release of the US jobs report on Thursday, while also monitoring trade and US budget bill discussions.

1. Is this rally sustainable?

This current uptrend may not be enduring and could face interruptions from short-term declines due to external pressures on the market. Nevertheless, analysts anticipate potential price increases in the mid-term despite possible dips.

You may also like: (LIVE) Crypto News Today: Latest Updates for July 3, 2025 The cryptocurrency market is exhibiting positive momentum today, with the total crypto market cap rising by 0.2%. Bitcoin is up 2.5% over the past 24 hours, currently trading just above $108,800 after briefly surpassing $109,600. Ethereum has also seen significant gains, climbing over 6% and trading above $2,560. But what other developments are occurring in crypto news today? Stay tuned for our live updates…

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