Crypto Market Surges: Key Factors Behind the Rally

The cryptocurrency market witnessed significant gains on July 2, with Bitcoin leading the charge. BTC surged 3.5% within 24 hours, approaching its all-time high of $111,970 after a month of sideways trading. The global crypto market added $150 billion in a single day, pushing the total market capitalization to $3.37 trillion.

Several factors contributed to this rally:

1. US-Vietnam Trade Agreement: The White House announced a new trade deal with Vietnam, where Vietnam will eliminate all tariffs on US goods while maintaining 20%-40% duties on its exports to the US — a move favorable to American trade.

2. Money Supply Growth: Bitcoin received a boost from the US M2 money supply, which grew 4.5% in May to a record $21.94 trillion — marking 19 consecutive months of expansion. Historically, BTC prices tend to follow such monetary expansion after several months.

3. ETF Inflows: Bitcoin spot ETFs attracted $407.8 million in inflows on July 2, with Fidelity ($184 million), Ark Investment ($83 million), and Bitwise ($64.9 million) leading the pack.

4. Short Squeeze: Approximately $248.85 million in short positions were liquidated in 24 hours, while long traders saw $45.80 million in liquidations, according to CoinGlass data.

Altcoins also joined the rally, with Ethereum rising 5% to $2,588, and assets like XRP, Solana, and Cardano each gaining around 5%. Memecoins such as Dogecoin and Shiba Inu saw 5%-8% increases. Today's top performers include Bonk (+22.36%) and Dogwifhat (+18.4%), while Four (FORM) and Pudgy Penguins led the losses.