Bitcoin regains $109,000 level on positive macro cues as market eyes next driver

Bitcoin, ether, and other major cryptocurrencies saw notable gains on early Thursday morning, riding favorable macroeconomic tailwinds.

As of 1:30 a.m. ET, bitcoin added 2.5% in the past day to trade above $109,000. The cryptocurrency briefly rose above $109,600 a few hours prior, reaching levels last seen on June 12.

Ethereum also rallied 5.58% to $2,564, with XRP, Solana, and Dogecoin posting gains as well.

“The market’s move higher today can largely be tied back to macro liquidity,” BTC Markets Crypto Analyst Rachael Lucas said, pointing to a recent uptick in M2 money supply. “While that doesn’t always translate into immediate price action, it tends to find its way into risk assets like crypto with a bit of a lag.”

Meanwhile, the U.S. finalized a trade agreement with Vietnam, reducing tariffs on Vietnamese imports to 20% from the initially proposed 46%. This development, occurring as the U.S. nears the July 9 end of its 90-day tariff pause, could indicate potential for positive outcomes from ongoing trade negotiations with other nations.

While bitcoin has managed to float above the $100,000 resistance line for an extended period, the market needs a “sustained catalyst” for the cryptocurrency to break through its all-time high truly, the crypto analyst said.

“That could come in the form of clearer interest rate direction from the Fed, or further ETF inflows,” Lucas said. “Institutional allocations have been the quiet driver of this rally, and they’ll need to continue for a decisive breakout.”

Analysts say the current crypto market cycle is primarily driven by institutional capital buying bitcoin, with retail participation in the market remaining subdued, as signified in the cumulative trading volume of centralized exchanges hitting a nine-month low in June.

“The growing institutional presence in crypto is a double-edged sword,” Lucas said, citing legitimacy, liquidity and long-term capital as the positives. “But when retail steps back, you risk ending up with a market that’s too top-heavy and potentially more reactive to macro headlines or portfolio rebalancing flows.”

With institutional momentum continuing to lead the market, bitcoin is poised to sustain its strong performance and reach new highs, particularly as its acceptance as a treasury asset collateral grows, said Augustine Fan, Head of Insights at SignalPlus.

“ETH is a trickier call and dependent on how well it executes on its DeFi potential to augment the existing financial system,” Fan said. “Altcoins will likely continue to struggle as on-chain activity slows with a lack of new capital coming in, with attention being superseded by a new wave of TradFi-backed projects that will likely surface once current regulations become more settled.”