Why is the Crypto Market Up Today?

The total crypto market cap (TOTAL) has been noting growth over the last 24 hours, even as Bitcoin (BTC) continues to move sideways. The highlight of the day, however, is Conflux, which posted a God Candle as it shot up 119%.

In the news today:-

• The White House will release its first full crypto policy report on July 22, following President Trump’s executive order to boost U.S. leadership in digital finance. The order also revoked Biden’s 2022 crypto policy and halted plans for a government-issued digital dollar.
• The UK plans to sell over £5 billion ($6.7 billion) worth of Bitcoin seized from a 2018 Chinese Ponzi scheme to help reduce its budget deficit. Authorities are coordinating secure storage and sale logistics ahead of the liquidation, according to The Telegraph.

The Crypto Market Grows

The total crypto market cap has surged by $79 billion in the past 24 hours, reaching $3.89 trillion. This significant growth is largely attributed to the rising momentum among altcoins. With Bitcoin stabilizing, the broader market is steadily pushing toward the key psychological barrier of $4.00 trillion.

If altcoins continue their rally or Bitcoin breaks above $120,000, the total market cap could gain additional momentum. In such a scenario, the TOTAL market cap would likely flip $3.90 trillion into a support level. This shift could propel the market to touch or even exceed the $4.00 trillion milestone.

Total Crypto Market Cap Analysis. Source: TradingView

However, the bullish trend remains fragile. If investors begin offloading their assets to secure profits, TOTAL may reverse its gains. This could lead to a pullback below $3.80 trillion, erasing recent progress and potentially invalidating the current optimistic outlook for the crypto market.

Bitcoin Continues Consolidation

Bitcoin price is hovering at $118,611, indicating a pause in its recent bullish momentum. As altcoins take the lead in market rallies, BTC appears to be consolidating. This shift suggests that traders are rotating capital into altcoins, hinting at the start of a potential altcoin season across the crypto space.

Bitcoin remains within a tight range between $117,000 and $120,000. If altcoins continue their strong performance and the broader sentiment favors diversification, BTC may test the $115,000 support level. A dip below this threshold could confirm short-term weakness, placing Bitcoin temporarily out of the spotlight during an active altcoin season.

Bitcoin Price Analysis. Source: TradingView

Conversely, renewed investor interest and inflows could reignite bullish momentum for Bitcoin. A clean break above the $120,000 resistance would allow BTC to rally toward $122,000. This move would bring the crypto giant closer to its all-time high of $123,218, invalidating the bearish outlook and reasserting its market dominance.

Conflux Forms 7-Month High

CFX price surged 110% in the past 24 hours, making it the best-performing altcoin of the day. The rally followed the successful conclusion of the Conflux conference in Shanghai. The event spotlighted recent ecosystem developments, fueling investor optimism.

In addition to the rally, anticipation is building around the upcoming Conflux 3.0 upgrade, scheduled for August. This has driven further bullish sentiment. Currently trading at $0.22, CFX could breach $0.24 and potentially rise to $0.26 if momentum remains strong and investor interest holds.

CFX Price Analysis. Source: TradingView

However, a sharp sell-off by investors could reverse the rally quickly. If CFX loses its footing at the $0.19 support level, it may drop to $0.17. Such a decline would invalidate the current bullish outlook, signaling caution for traders amid heightened volatility.