The total market value of all cryptocurrencies increased by $123.17 billion in July, reaching a total of $2.159 trillion.
Total market value of all cryptocurrencies as of July
During the month, Bitcoin increased by 7.2 percent to reach $62,884.9, while Ethereum rose by 18.2 percent to $1,862.3. The rise in Ethereum represents its fastest monthly increase in 11 months.
The market growth coincided with expectations that the US Federal Reserve might postpone interest rate hikes due to slowing inflation in the US.
Geopolitical factors and US legislative news also influenced investor sentiment. The easing of tensions between the US and Iran in recent weeks supported appetite for risky assets. Additionally, news regarding US President Donald Trump approving new ethical rules related to the 'CLARITY Act'—a bill aimed at providing legal clarity to the sector in the US Senate Banking Committee—supported market optimism.
Market analysis
Blockchain and Crypto Asset Strategist Mete Ali Başkaya stated that the positive trend in July resulted from a combination of several factors. He noted that part of the rise should be seen as a reaction buy following oversold conditions and a rebalancing of positions after sharp sell-offs in June.
July's return of Spot Bitcoin ETF inflows shows institutional demand has not disappeared.
Başkaya described the current movement not as the start of a strong and lasting bull market, but as a controlled recovery following sharp sell-offs. He stated that for the rise to become permanent, ETF inflows must continue, expectations of a softer monetary policy from the Fed must strengthen, geopolitical tensions must remain low, and investor risk appetite must increase.
Regarding inflation, Fed Chair Kevin Warsh emphasized that the Federal Reserve is determined to fight inflation, though he did not provide a concrete explanation on how this would be achieved.
