Bitcoin, Ethereum, Dogecoin Rise As China Counters Trump's Trade Deal Breach Claim: Analyst Says BTC Success Riding On Health Of US Economy

Leading cryptocurrencies climbed on Monday, despite rising trade tensions between the U.S. and China.

What Happened: Bitcoin surpassed $106,000 overnight, after fluctuating between $104,000 and $105,000 throughout the day. Trading volume jumped 30% from the previous day.

Similarly, Ethereum broke past $2,600 in the late evening rally, with volume rising by over 43% in the last 24 hours. The spike comes after co-founder Vitalik Buterin said that the blockchain’s base layer will be scaled by 10x in about a year.

Bitcoin's market dominance narrowed to 63.8%, while Ethereum's share of the market widened to 9.5%

More than $200 million was liquidated from the cryptocurrency market in the last 24 hours, with bearish bets accounting for 62% of the total liquidations.

Moreover, nearly $363 million in shorts risked liquidation if BTC rallied to $108,000.

Ethereum's Open Interest jumped 7.22% in the last 24 hours, reaching a new all-time high of $36.46 billion. More than 60% of Binance traders with open ETH positions were long at the time of writing.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.34 trillion, following an increase of 1.08% in the last 24 hours.

Stocks edged up on the first trading day of June. The Dow Jones Industrial Average rose 35.41 points, or 0.08%, to end at 42,305.48. The S&P 500 rose 0.41% to close at 5,935.94, while the tech-focused Nasdaq Composite spiked 0.67% to end at 19,242.61.

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Investors continued to monitor developments around the U.S.-China trade dispute. China rejected President Donald Trump’s allegations of violating the Geneva trade pact. Instead, it accused the U.S. of imposing “discriminatory restrictive” policies, such as limiting AI chip exports.

See More: Best Cryptocurrency Scanners

Analyst Notes: Blockchain analytics firm Santiment observed that cryptocurrency traders were being cautious about Bitcoin.

"Bitcoin mentions across social media show 1.3 bullish comments for every 1 bearish comment. This reflects the crowd’s high association between BTC and the stock market, with its success highly contingent on a healthy American economy," Santiment stated.

On the other hand, there was euphoria for Ethereum, with 3 bullish comments for every 1 bearish comment, likely due to its 41% surge last month.

Cryptocurrency analyst and trader Michaël van de Poppe noted a "hidden bullish divergence" for ETH, signaling a potential upward breakout. 

"It’s still taking a lot of time, but happy to be seeing the consolidation while still being up a lot from the low in April," Van De Poppe said.

Photo Courtesy: Quality Stock Arts on Shutterstock.com

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