After a powerful rally earlier this week, the crypto market cooled off on Thursday, June 12, as Bitcoin slipped below \$107,000, marking a 2.24% daily decline. Other major altcoins followed suit: Ethereum dropped 2.67%, Cardano fell 5.29%, and Chainlink plummeted by 6.64%. While the pullback has stirred caution among traders, several bullish indicators suggest that a fresh crypto bull run might just be around the corner.
Here are the five most compelling reasons why the crypto market could soon reignite:
1. Bitcoin’s Bullish Fundamentals and Technicals Are Aligning
Despite the recent dip, Bitcoin’s foundation remains robust. Demand is surging, especially from institutional channels. Spot Bitcoin ETFs have now accumulated \$45.2 billion in inflows since their January 2024 launch. BlackRock’s IBIT alone holds a massive \$72 billion in assets, signaling strong Wall Street appetite.
On-chain data supports the trend Bitcoin’s supply on exchanges has shrunk dramatically to 1.1 million, down from 3.2 million in 2020. This reduction in circulating supply could prime BTC for a major breakout.
Technically, Bitcoin is forming a classic cup-and-handle pattern. The setup is nearing completion, and a breakout above the previous all-time high of \$111,900 could trigger a sustained rally, pulling other altcoins along for the ride.
2. Ethereum ETFs Continue to Attract Big Capital
Ethereum has been gaining institutional attention too. According to SoSoValue, spot ETH ETFs have seen five consecutive weeks of inflows, adding \$1.2 billion, pushing total holdings to \$3.7 billion.
On the charts, Ethereum is flashing bullish signals, including a golden cross and bullish flag pattern classic indicators of upcoming upward price action. Combined with ETF interest, this could reinforce Ethereum’s leadership in the altcoin space.
3. Altcoin ETFs Gaining Regulatory Momentum
The ETF momentum may soon spread beyond Bitcoin and Ethereum. Markets are increasingly confident that altcoin-based ETFs could receive approval in the coming months.
Polymarket data now gives XRP ETF approval odds at 88%, while Solana is even higher at 90%. Other contenders include Litecoin, Hedera, and Sui (SUI). With regulatory tailwinds building, a new wave of institutional inflows could drive altcoins sharply higher.
4. Fed Rate Cuts May Fuel Crypto Upside
The macroeconomic backdrop is becoming more favorable for risk assets like crypto. With inflation cooling May CPI came in at 2.4%, slightly below forecasts the Federal Reserve is expected to start cutting interest rates later this year. Polymarket traders currently anticipate two to three cuts in 2025.
Adding to this, political developments suggest a more crypto-friendly future. If Donald Trump wins re-election, he is rumored to be considering Scott Bessent, a known crypto supporter, as the next Fed Chair. A dovish Fed could boost liquidity and risk appetite, accelerating crypto adoption.
5. Geopolitical and Legislative Tailwinds Support Growth
Improving geopolitical conditions, particularly between the US and China, could ease pressure on global markets. As China leverages rare earth exports strategically, a mutual easing of tariffs may restore supply chain stability, supporting tech and mining sectors that intersect with crypto.
On the legislative front, the recent passage of the GENIUS Act in the US Senate is another bullish signal. The bill brings clearer regulatory frameworks for stablecoins, which could encourage more institutional players to enter the crypto space.
Moreover, corporate adoption is expanding. Firms are starting to add XRP, Solana, and other altcoins to their treasuries, and the global M2 money supply is expanding, providing more capital for speculative investment.
Final Thoughts
While Thursday’s market dip raised eyebrows, the broader picture remains optimistic. Strong technical patterns, robust ETF inflows, dovish central bank outlooks, and increasing adoption all signal that crypto could be gearing up for its next bull run. If Bitcoin breaks above key resistance, it may just ignite a rally that sweeps across the entire digital asset landscape.
