The cryptocurrency market is experiencing a resurgence after a series of consecutive declines. Most of the top 100 digital currencies have posted gains in the last 24 hours, while the overall market capitalization has faced a slight dip of 1%, settling at $3.43 trillion. The trading volume for cryptocurrencies stands at $101 billion.
Key Highlights:
- The cryptocurrency market cap has seen a minor decline, with most coins in the green.
- Bitcoin (BTC) might slip below $100,000, yet the general outlook remains positive.
- Market sentiment is shifting towards greed once again.
- Investor interest is moving towards decentralized assets.
- US spot Bitcoin ETFs have recorded net outflows, while Ethereum (ETH) ETFs continue to see inflows.
- The current rally appears to have sustainability.
What’s Driving the Uptick in Crypto? Market Winners & Losers
As of the latest update, nine of the top 10 cryptocurrencies by market capitalization are trading positively, with only one coin experiencing a minor decline. Bitcoin has dipped 0.2% to $105,224, still above yesterday’s price of $104,884.
Ethereum has seen the most significant growth among major cryptocurrencies, rising 4% to reach a trading price of $2,610. Other coins on the rise have seen increases between 1% and 3%.
In a noteworthy development, the Ethereum Foundation announced a reduction in its research and development team as part of a reorganization, renaming the division to ‘Protocol’. The foundation stated that this change aims to create a more cohesive and streamlined organization.
Announcing Protocol https://Finance Newso.com/news/why-is-crypto-up-today-june-3-2025/— Ethereum Foundation (@ethereumfndn) June 2, 2025
Among the top 100 cryptocurrencies, 20 experienced price increases yesterday while another 20 saw their values decline today. The most considerable drop was observed in Bittensor (TAO), which fell by 5% to $392. In contrast, Dogwifhat (WIF) emerged as the top gainer, climbing 12.3% to trade at $0.975, followed closely by Ethena (ENA) with an 8.7% increase to $0.3385.
PrimeXBT contends that despite a bearish close last week, the overarching market trend remains bullish, with clear patterns of higher highs and higher lows indicating ongoing strength.
“As long as the green zone remains intact, the bias continues to lean bullish with caution. A significant breakdown below $100,700 could signal possible weakness and a shift in momentum towards the $96,000 region,” analysts noted.
Pullback in motion, trend still intact. #Bitcoin rejected near ATHs, but the uptrend remains strong unless $96K breaks. https://Finance Newso.com/news/why-is-crypto-up-today-june-3-2025/— PrimeXBT (@PrimeXBT) June 2, 2025
Crypto as a Strategic Diversification Tool
James Toledano, Chief Operating Officer of Unity Wallet, expressed that while digital assets can be affected by macroeconomic shocks, more investors are viewing Bitcoin as a hedge against economic instability.
He noted that after the announcement of a “reciprocal tariff” strategy by US President Donald Trump in April, Bitcoin initially dropped by 7% before stabilizing. Data on investor behavior around the same period indicated a decline in momentum buyers, juxtaposed with an increase in profit-taking.
Investor behavior data for $BTC indicates a drop in Momentum Buyers (RSI ↓ to ~20) while Profit Takers increased (RSI ↑ to ~77) around May 28. This trend often suggests local tops as traders begin securing gains instead of expanding their exposure. https://Finance Newso.com/news/why-is-crypto-up-today-june-3-2025/— glassnode (@glassnode) June 2, 2025
However, Toledano pointed out that previous downturns during tariff incidents have been relatively contained compared to broader markets. He emphasized that tariffs are increasingly perceived as negotiation techniques rather than long-term economic policies, which reduces their impact.
“While tariffs may cause volatility, Bitcoin is increasingly being recognized as a strategic diversification tool rather than a volatile asset,” he stated.
Furthermore, compared to April, today’s market reveals more disciplined investor behavior coupled with robust institutional interest. He remarked that there are indications of a shift towards alternative assets as global equities decline, US Treasury yields rise, and the dollar weakens.
“As confidence in fiat-backed instruments wanes amid geopolitical uncertainties, capital appears to be migrating towards decentralized stores of value. Bitcoin’s resilience in such conditions signals its increasing maturity and acceptance as an investment vehicle,” he added.
Despite a dip compared to the previous week, last week’s inflow of 6,148 $BTC into US spot ETFs marks the seventh consecutive week of net inflows, indicating consistent demand. https://Finance Newso.com/news/why-is-crypto-up-today-june-3-2025/— glassnode (@glassnode) June 2, 2025
According to Alexei Zamyatin, Co-Founder of Layer 2 BOB, the acceleration of institutional adoption of Bitcoin is notable. Institutions are not only amassing Bitcoin but are also seeking avenues to leverage it.
“The US’s strategy to acquire 1 million BTC over five years underscores Bitcoin’s status as a financial asset,” Zamyatin commented. “This acknowledgment is likely to bolster demand for yield-generating Bitcoin products, positioning DeFi as the next logical development. With institutions and governments influencing Bitcoin’s trajectory, DeFi’s growth is poised to accelerate.”
Critical Levels & Future Events to Watch
Currently, Bitcoin is priced at $105,224, down from an intraday high of $106,415, and 5.9% below its all-time high of $111,814. The asset has seen a 4% decline over the week but improved by 9.6% over the past month.
As stated by PrimeXBT, the essential level to observe is $107,000, which corresponds with the previous all-time high support zone. If Bitcoin fails to remain above this threshold, the next significant support is anticipated in the $95,000-$96,000 range.
A pullback at this initial support is not seen as alarming from a long-term viewpoint, as Bitcoin maintains a clear upward trend and the overall market structure suggests continued strength.
Additionally, the Fear and Greed Index has shown slight upward movement within the neutral zone, rising from 57 yesterday to 58 today. This indicates a cautious market sentiment, balancing between fear and greed as investors await further signals for future movements.
On June 2, US Bitcoin spot exchange-traded funds (ETFs) experienced net outflows totaling $267.52 million, with Bitwise being the only entity to record inflows today, amounting to $3.41 million. In contrast, US Ethereum ETFs have continued their inflow streak, gaining $78.17 million on the same day. BlackRock and Fidelity contributed to these inflows with net figures of $48.4 million and $29.78 million, respectively.
Several regulatory developments are also on the horizon, including the South Korean presidential election and the potential passage of a stablecoin bill in the US. Crypto industry advocates are urging US lawmakers to advance the GENIUS bill as it progresses to Senate discussions this week.
All three leading presidential contenders in South Korea have shown support for permitting Bitcoin ETFs and institutional crypto investment ahead of the June 3 vote, indicating a possible shift in policy. https://Finance Newso.com/news/why-is-crypto-up-today-june-3-2025/— Finance Newso.com (@Finance Newso) May 14, 2025
Quick FAQ
Why did crypto and stocks move together today?
Today’s performance shows gains in both the crypto and stock markets, albeit not in complete alignment. The S&P 500 rose by 0.41%, the Nasdaq-100 climbed 0.71%, and the Dow Jones Industrial Average saw a marginal increase of 0.084%. The stock market’s improvement comes as it responds to concerns over US-China trade tensions and tariffs announced by President Trump.
Is this rally likely to last?
The market is undergoing a consolidation period. While some analysts forecast potential declines, they do not anticipate a significant bearish reversal at this time.
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