XBTFX

MARKETS week ahead: July 1 – July 7

CRYPTOCAP:TOTAL   Crypto Total Market Cap, $
Last week in the news

Inflation data were in focus of markets during the previous week. The US PCE data published on Friday, impacted some repositioning among asset classes. The US equities reacted to the inflation data by ending Friday`s trading session in red. The S&P 500 ended the week at the level of 5.460. The US Dollar modestly weakened during the week, allowing gold to recover some of the weekly losses, ending the week at level of $2.340. The strongest reaction to posted data had 10Y Treasury yields, which were increased to the level of 4.4%. The crypto market continues to be under pressure, where BTC was testing the lower grounds during the week, still, ending it above $60K support level.

The Fed's favorite inflation gauge, the PCE Price Index for May was published on Friday. The index was standing at the level of 2.6% y/y, and at the same level as core PCE. Figures for May represent its lowest level within the last three years. Despite the evident decrease in inflation pressures, the markets are still not sure regarding the Fed`s pivoting point in time. The majority of market participants are still perceiving that the first rate cut might occur in September this year.

As CNBC is reporting, a new wave of M&A activities started within the crypto mining industry, noting as a catalyst artificial intelligence. Namely, as crypto miners have the necessary equipment for “compute-intensive AI operations' ', initially installed for the mining of crypto coins, they became a target of larger companies within the field of AI. In this sense, a Nvidia backend start-up, CoreWeave announced a deal with Core Scientific company. It is noted that the deal is expected to generate additional $1.2 billion in revenues within the next 12 years.
In line with the development of AI technology and the demand for data centers, the European Union has finalized their study on a potential for launching data centers in Earth's orbit. As the demand for electricity is significantly increasing due to the developments in the digital sectors, the ASCEND is trying to solve the issue through using solar energy within the Earth's orbit.

After BTC and ETH, Solana is the next one to be eligible for an exchange traded fund. As per news reports, VanEck asset management company in the US filed with the SEC for a registration of selling shares through a Solana ETF. VanEck`s researchers believe that the Solana is acting like a commodity and not a security, and that it acts like a competitor to Ethereum blockchain. Solana rose 8% on this news.

China is slowly gearing up to be the leader of the global market within the field of electric vehicles. As per study conducted by the consulting firm AlixPartners, the Chinese automakers will achieve a 33% global market share of EV by 2030. However, the firm is noting far slower expansion in Japan and North America, considering the 100% tariff on imported Chinese EV`s that these countries are imposing on imports from China.


Crypto market cap

For the second week in a row the crypto market is slowing down. Investors' interest continues to be focused on inflation data, in which sense, recent posted PCE and consumer confidence data had also some impact on the crypto market. Anticipation of the next Fed move when it comes to interest rates continues to be a major concern of market participants, in which sense, some repositioning is occurring. During the previous week, total crypto market capitalization decreased by additional 4%, wiping out some $86B from the market value. Daily trading volumes continue to move around $94B on a daily basis. Total crypto market capitalization increase from the end of the previous year, currently stands at $567B, which represents a 35% surge from the beginning of this year.

Previous week`s drop in total crypto market capitalization was led by its major coins, BTC and ETH, while other altcoins were traded in a mixed manner. BTC lost 5.2% of its value on a weekly basis, losing more than $ 66B in market cap. ETH took the second place with outflow of $20.8B from its market cap, which is a decrease of 4.9% within a single week. Binance Coin was also traded to a downside, losing $2.5B in market cap, or 2.9%. One of the highest losers within the week in relative terms was Uniswap, with a drop in value of 10.1%. However, there were coins which managed to increase their value on a weekly basis. Solana should be specially mentioned, with a weekly gain of 5.4%, adding $3.3B to its market cap. This increase came after news hit the market that asset manager VanEck filed with the SEC for a registration of selling shares through a Solana ETF. Tron and Polkadot had a good week, with an increase in market cap of more than 5%.

When it comes to coins in circulation, ETH was the greatest weekly surprise. Namely, around 1.7% of its coins were pulled off from the market. There is currently no public information what`s the cause of such a move. This week IOTA had one of the highest increases of coins on the market, with a surge of 0.6% on a weekly basis. Filecoin increased its circulating coins by 0.3%.




Crypto futures market

Two weeks ago the spot crypto market turned to a short correction, still, there has not been some significant response from the crypto futures market. However, during the previous week, there has been some significant correction, when it comes to the crypto futures. Both BTC and ETH futures were traded lower from the week before.

BTC short term futures ended the week around 5% lower from the week before. December 2024 was traded by 7.7% lower from the end of the previous week, ending it at $62.315. Futures maturing in December 2025 were traded lower by 6.7%, with a closing price of $69.385.
Similar situation was also with ETH futures. Short term ones were traded around 7% lower from the week before, while December 2024 ended the week by a round 4% drop in value, with the last traded price at $3.505. December 2025 had a slower drop of 3.45% on a weekly basis, closing the week at $3.774.

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