Crypto Markets Extend Gains as Bitcoin (BTC) Reclaims $57K, Bittensor (TAO) Surges 14%

Crypto markets continued to post gains on Tuesday morning, with the combined crypto capitalization bouncing 1.7% over the past 24 hours.

Crypto markets continued to post gains on Tuesday morning, with the combined crypto capitalization bouncing 1.7% over the past 24 hours.

Bitcoin (BTC) is up 2% over the same period to last change hands for $57,200, while Ethereum (ETH) is trading at $3,050 after recording a 2.2% gain. Polkadot (DOT) is trading above $6.10 after a 2.5% daily bounce, while Solana’s (SOL) recent momentum is slowing at $139.5 after rebounding 1.7%.

Bittensor (TAO), Celestia (TIA), and Sei (SEIac) were the best-performing of the top 100 cryptocurrencies, posting daily gains of 14.2%, 13.9%, and 10.8%, respectively. Notcoin (NOT) posted the heaviest loss with just 3%, followed by Avalanche (AVAX) with 1.9%, and Near Protocol (NEAR) with 1.4%.

Modular blockchains and Solana meme tokens were among the strongest segments of the market with 24-hour gains of 20.5% and 12%, respectively.

The minor crypto recovery comes after digital assets suffered heavy losses late last week. Just three of the 100 largest non-stablecoin sectors post a gain over the past seven days, with modular blockchains enjoying a 19% rally.

Data from CoinGlass shows 34,142 traders getting liquidated for combined losses of $99.7 million.

Investors ‘Buying The Dip’

The crypto market bounce coincides with Bitcoin spot ETFs hosting their largest daily inflow in five weeks.

On July 8, Bitcoin ETFs recorded a net inflow of $294.8 million, led by BlackRock’s IBIT with $187.2 million. This is the highest single-day inflow since June 6, according to data from Farside.

Willy Woo, a popular crypto market analyst, asserted that ETF investors are seizing the opportunity created by late last week’s bearish momentum to dip-buy.

“ETFs are buying the dip,” he tweeted. “A little early to call, but suggestive of an accumulation pattern. Look for price going sideways in a compressed low volatility band with BTC leaving exchanges.”

Stock market spikes

U.S. stock futures also saw a modest rise on Tuesday. Dow Jones Industrial Average futures nudged up 56 points, or 0.1%, while S&P 500 and Nasdaq-100 futures climbed 0.2% and 0.4%, respectively.

This comes as the U.S. labor market is showing signs of weakness, which could be beneficial news for Bitcoin. A weaker labor market might prompt the Federal Reserve to cut interest rates, injecting a significant amount of liquidity into the market.

Last Friday’s U.S. employment report showed weaker-than-expected job growth, suggesting that the central bank might cut rates to prevent a recession. Bureau of Labor Statistics report indicated that nonfarm payrolls increased by 206,000 jobs in June, largely due to government hiring.

According to CME FedWatch data, 75% of market participants expect the Fed to cut rates twice this year.

Jerome Powell, chair of the Federal Reserve, is slated to testify before Congress on Wednesday, offering his semiannual update on monetary policy.

Meanwhile, several key inflation indicators, including the June consumer price index and the producer price index, are set to be released later this week.

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