Crypto Holds Firm as Bitcoin Eyes New Highs Amid Musk Buzz, Tariff Easing, and Summer Calm

Bitcoin ended last week on a historic note, logging its highest-ever weekly close just shy of $110,000, despite a market landscape clouded by shifting macro risks. Dormant whale wallets transferring $8 billion worth of BTC, lingering trade tensions, and thin holiday trading volumes all threatened to dampen sentiment—but crypto prices stayed buoyant.

By Tuesday, BTC was holding steady just under $108,000, recovering from a brief sell-off Monday night. Profit-taking rippled through other major tokens: Solana (SOL) slipped 2.3% to $149, while dogecoin (DOGE) fell 4.1%. Ether (ETH) hovered near $2,530, and XRP remained stable around $2.26.

Macro Backdrop

Asian equities wavered but avoided a significant downturn after former President Donald Trump signaled willingness to resume trade negotiations, delaying new tariffs until at least August 1. The MSCI Asia-Pacific index traded flat even as Korea and Japan faced looming levies. Meanwhile, appetite for risk assets returned, reflected in a softening yen, a strengthening won, and euro gains driven by hopes for a fresh EU agreement.

“Markets are hovering around record highs again,” said Augustine Fan, Head of Insights at SignalPlus.

Fan noted that optimism ahead of the new earnings season is fueling sentiment:

“Earnings season kicks off this week, and sentiment is being driven by the hope that CEOs guide positively, especially after being blindsided last quarter by sudden tariff headlines.”

Crypto remains tightly correlated with equities, with BTC’s connection to the S&P 500 near local highs. Fan cautioned that unless volatility picks up meaningfully, traders could be in for “a hot but quiet summer,” though he acknowledged that sudden breakouts remain possible in thin markets.

Outlook for Bitcoin and Ethereum

Despite profit-taking, some analysts foresee significant upside for crypto markets in the coming weeks.

“Bitcoin is well-positioned to break its previous high in July, with upside potential toward $120,000 by month-end,” said Ryan Lee, chief analyst at Bitget Research, in comments shared with CoinDesk.

Lee pointed to robust institutional demand and steady inflows into bitcoin ETFs as key pillars supporting the market’s bullish trend.

He also expressed optimism for ether’s outlook:

“Ethereum is also gaining strength, supported by sustained whale accumulation and renewed optimism under a crypto-friendly U.S. administration. ETH could test $3,000 by the end of July, though market volatility remains a factor.”

Lee added that anticipation of a possible Federal Reserve rate cut in September could serve as another catalyst for crypto gains later in the year.