Bitcoin, Ethereum, Dogecoin Extend Rally Triggered By Failed Trump Assassination Attempt: Analyst Calls Pullback To $60K As King Crypto's Next 'Big Test'

The Bitcoin market maintained its strong weekend momentum into Monday, as Donald Trump’s failed assassination attempt and Federal Reserve Chair Jerome Powell’s positive speech bolstered risk appetite.

What Happened: Bitcoin shot past $64,000 for the first time in three weeks, extending a rally triggered after former President Donald Trump survived an assassination attempt at an election rally. The King Crypto is up 12% since this event.

Ethereum got a boost after experts zeroed in on the July 23 launch of its spot ETF products. The world's second-largest cryptocurrency entered the $3,400 zone for the first time since June 3.

Over $184 million locked in derivatives positions was liquidated in the last 24 hours, with bearish traders losing nearly $150 million of the total. 

The upsurge resulted in a 5.25% spike in Bitcoin's Open Interest, signaling an influx of fresh money into the market.

That said, the number of traders taking upside bets for the asset dropped vis-à-vis those opening bearish bets. 

The Cryptocurrency Fear and Greed Index flashed “Greed” as of this writing, indicating a huge shift in market sentiment following last week’s fear and anxiety.

Top Gainers (24-Hours)

The global cryptocurrency market cap surged 5.35% in the last 24 hours to hit $2.37 trillion.

Stocks started the week on a high. The Dow Jones Industrial Average soared 210.82 points, or 0.53%, to close at 40,211.72. The blue-chip index hit a new intraday high during the session. The S&P 500 gained 0.28% to end at 5,631.22, while the tech-heavy Nasdaq Composite added 0.40% to close at 18,472.57.

The rally comes in response to Trump surviving an attempt on his life, with investors betting on big political gains for the Republican presidential nominee leading into the polls later this year.

Additionally, the market considered the dovish comments from Federal Reserve Chair Jerome Powell, who expressed confidence that inflation is moving toward the 2% target.

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Analyst Notes: Widely-followed cryptocurrency trader Altcoin Sherpa asked investors to exercise caution, saying, "I don’t think we’re necessarily out of the woods yet."

He added that an ideal scenario for Bitcoin would be to chop in the $60,000 – $61,000 zone and then retest. "More time spent here is better for a more sustainable bottom," the trader remarked.

The firm forecasted that developments around U.S. politics will continue to influence the market, at least for the rest of the year. 

Another prominent analyst Benjamin Cowen predicted King Crypto's next big challenge will potentially be a backtest of $60,000.

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