Despite dormant whale activity, crypto markets shrug it off as traders take profits on XRP, DOGE, and SOL.

Bitcoin Steadies Near Highs as Crypto Traders Balance Musk Buzz and Tariff Uncertainty

Bitcoin closed last week at a record weekly high, ending just shy of $110,000, despite a market grappling with mixed signals—including dormant whale wallet movements totaling $8 billion, ongoing tariff disputes, and low holiday trading volumes.

By Tuesday, bitcoin was trading just under $108,000, having recovered from a brief sell-off late Monday. Other major crypto assets saw a wave of profit-taking. Solana (SOL) dropped 2.3% to $149, while dogecoin (DOGE) fell 4.1%. Ether (ETH) held around $2,530, and XRP remained steady near $2.26.

Macro Moves Underpin Market

In traditional markets, Asian equities wavered but avoided a significant downturn after former President Donald Trump indicated he’s open to renewing trade discussions, pushing back potential new tariffs to at least August 1. The MSCI Asia-Pacific index was flat despite ongoing tension, while the yen softened and the Korean won rallied. The euro also gained on hopes for an EU breakthrough.

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

He noted that traders are cautiously optimistic heading into corporate earnings season:

“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.”

Cryptocurrencies remain closely linked to equities, with bitcoin’s correlation to the S&P 500 holding near local highs. Fan suggested the market might see a “hot but quiet summer” unless volatility surges, though he warned that sudden moves remain possible in thin markets.

Bullish Hopes for BTC and ETH

Despite recent selling pressure, some analysts foresee bitcoin pushing even higher in 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, speaking to CoinDesk.

Lee pointed to strong institutional demand and steady ETF inflows as key forces supporting the market.

He also expressed optimism for ether:

“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 a potential Federal Reserve rate cut in September could further energize crypto markets later in the year.