Bitcoin, Ethereum and SOL Bounce From Yearly Lows as Traders Eye Bullish July

TradFi dip buyers are using futures to prop up BTC and ETH after crypto majors dropped to yearly lows last week. Will retail traders join the party?

Crypto markets improved at the end of last week but generally remained deeply bearish. Persistent spot Bitcoin and Ether ETF outflows and liquidation risk asymmetry dampened investor confidence despite the consensus view that

trades at a discount. The negative sentiment was clearly reflected by crypto majors’ Q2 close, with Bitcoin down 14%, Ether (

) 26.6% and Solana (

) 9.4%.

The Crypto Fear & Greed Index score also fell to 11/100, highlighting the ‘extreme fear’ dominating the market. Meanwhile, Bitcoin ETFs’

across June marked the worst monthly performance since inception.

Outside of crypto markets, lingering concerns over AI capital expenditures and microchip pricing versus supply projections kept volatility present in global equity markets. Investors’ conviction may remain muted ahead of the July 8 release of FOMC minutes from June. They are also watching Federal Reserve Chair Kevin Warsh’s planned reveal of the members he’s selected for five task forces

.

Warsh, who at this first meeting effectively threw out the concept of “forward guidance,” has had markets on pins and needles. They may react negatively if the FOMC minutes read as hawkish or inclined toward future rate hikes.