Bitcoin remained relatively stable over the past 24 hours, continuing to trade above the $118,000 mark despite reports of a major sell-off by Galaxy Digital.

Bitcoin Calms Near $119,000

The cryptocurrency dropped sharply on Thursday and Friday following a massive sale of 80,000 BTC led by Galaxy Digital on behalf of a third party, pushing Bitcoin to a two-week low of $114,500.

After the sell-off was completed, Bitcoin quickly regained momentum, surging back to its usual range near $117,000 over the weekend. Gains extended into Monday morning, with prices approaching $120,000 before encountering resistance and retreating to $117,500, later stabilizing near $119,000 — resulting in a near 0% daily change.

Analysts expect further volatility over the next two days as markets await the Federal Reserve's decision on whether to cut interest rates or maintain current levels.

With Bitcoin steadily approaching the $120,000 threshold, optimism is rising in the crypto market, particularly as institutional investment and large-scale treasury purchases grow.

Bitcoin Momentum Reignites Interest in Altcoins

Bitcoin is currently trading at $118,888.16, up 0.69% on the day, with its market capitalization surpassing $2.36 trillion. Daily trading volume surged by 33.22% to over $61.39 billion.

This activity has sparked renewed interest in identifying the best cryptocurrencies to invest in, especially among digital treasuries seeking alternatives to Bitcoin and Ethereum. There's a growing focus on projects offering low gas fees, decentralized finance (DeFi) platforms, and multi-chain utility applications.

Emerging tokens like Remittix (RTX) are gaining attention as promising options due to their real-world solutions in global finance.

Meanwhile, Bitcoin’s dominance over the altcoin market remains above 59%, with its market cap stable at $2.365 trillion, according to CoinGecko data.

How High Can Bitcoin Go? Citi Forecasts Point to $200K

Citi Group analysts Alex Sanders and Nathaniel Robert issued diverging forecasts for Bitcoin’s future, setting a base target of $135,133, with an optimistic scenario reaching $199,340 by year-end.

They noted that this outlook marks a fundamental shift in how traditional financial institutions view the crypto market — no longer as a speculative asset but as an integral part of the global financial infrastructure.

“Crypto assets now represent a significant share of capital,” they added, “and the total crypto market cap is on par with the world’s largest publicly traded companies.”

Citi’s forecast aligns with other bullish reports, including a Bridge Capital analysis by Anthony Scaramucci predicting $200,000, and VanEck’s forecast of $180,000.

ETF Inflows Driving Bitcoin’s Price Surge

One key point in Citi’s analysis is that inflows into exchange-traded funds (ETFs) have become the main driver behind Bitcoin’s recent price rise. Data shows that 41% of Bitcoin’s price volatility can be explained solely by ETF activity since their launch.

Citi noted that the market has seen $19 billion in inflows so far this year, including $5.5 billion in recent weeks. They estimate that each $1 billion in weekly ETF inflows corresponds to a 3.6% price increase for Bitcoin, underscoring a direct mathematical link between institutional demand and price growth.

Oil prices rose on Tuesday, driven by optimism over easing trade tensions between the United States and its key trading partners, while US President Donald Trump increased pressure on Russia over its war in Ukraine.

Brent crude futures climbed by 47 cents, or 0.7%, to $70.51 a barrel by 09:24 GMT, after hitting their highest level since July 18. US West Texas Intermediate (WTI) crude futures rose by 53 cents, or 0.8%, to $67.24 a barrel.

Both benchmarks had ended the previous session more than 2% higher.

The latest increase followed the announcement of a trade agreement between the US and the European Union, which imposed 15% tariffs on most European goods but avoided a full-blown trade war between the two major allies. Such a conflict would have impacted nearly a third of global trade and weakened fuel demand prospects.

The deal also includes a pledge by the EU to purchase $750 billion worth of American energy over the next three years — a figure analysts say the EU has virtually no chance of meeting. It also stipulates that European companies will invest $600 billion in the US during Trump’s second term.

Meanwhile, top economic officials from the US and China continued their second day of talks in Stockholm, seeking to resolve long-standing trade disputes and step back from the brink of an escalating trade war between the world’s two largest economies.

Separately, Trump announced on Monday a new "10 or 12-day" deadline for Russia to make progress toward ending the war in Ukraine, threatening sanctions on Russia and its export buyers if no tangible progress is made.

ING Group said in a note: “Oil prices rose after President Trump’s remarks on shortening the deadline for Russia to reach an agreement with Ukraine to end the war, which sparked concerns about supply.”

At the same time, market participants are awaiting the results of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting, scheduled for July 29–30.

The Fed is widely expected to keep interest rates unchanged, but may signal a dovish shift in light of signs of slowing inflation, according to Priyanka Sachdeva, senior analyst at brokerage firm Phillip Nova.

The euro struggled on Tuesday to recover from its sharp losses, as investors began to realize that the terms of the trade agreement between the United States and the European Union largely favored Washington and offered little improvement to the EU's economic outlook. Meanwhile, the US dollar maintained its gains.

France on Monday described the framework trade deal as a "dark day for Europe," saying the bloc had yielded to President Donald Trump under an unbalanced agreement that imposed 15% tariffs on European goods.

German Chancellor Friedrich Merz said the German economy would suffer "significant" damage as a result of the agreed tariffs.

The euro had dropped by 1.3% in the previous session, marking its largest daily decline in over two months, amid concerns over growth and a decline in eurozone government bond yields.

The euro failed to regain those losses and was recently trading slightly lower by 0.02% at $1.1584.

Ray Attrill, Head of FX Strategy at National Australia Bank, said: "It didn’t take long for markets to conclude that while the news appears relatively positive, it’s ultimately negative when it comes to its near-term impact on eurozone growth."

He added: "The deal was strongly condemned by France, while others — including Chancellor Merz — spoke of the negative consequences for exporters and, by extension, economic growth."

The euro’s decline supported the dollar, which jumped 1% against a basket of currencies overnight.

The dollar held steady on Tuesday, pushing the British pound to a two-month low of $1.3338, while the Japanese yen rose 0.2% to 148.22 yen per dollar. The dollar index held flat at 98.66.

Thierry Wizman, global currency and interest rate strategist at Macquarie Group, said:

"While the strength of the US dollar may reflect the perception that the new trade agreement between the US and the EU leans in Washington’s favor, it may also reflect a sense that the US is reengaging with the EU and its key allies."

However, Trump said Monday that most trade partners who are not negotiating separate deals will soon face tariffs ranging from 15% to 20% on their exports to the US — significantly higher than the 10% blanket tariff he imposed in April.

In other currency markets, the Australian dollar rose 0.04% to $0.6524, while the New Zealand dollar was little changed at $0.5970.

The Chinese yuan in the domestic market hit a one-week low at 7.1794 per dollar, as investors awaited the outcome of trade talks between Washington and Beijing.

Top economic officials from the US and China met in Stockholm on Monday for more than five hours of talks aimed at resolving longstanding economic disputes behind the ongoing trade war between the world’s two largest economies, in an attempt to extend the current three-month truce.

Alongside the trade negotiations, investors this week are also awaiting interest rate decisions from both the US Federal Reserve and the Bank of Japan.

Both central banks are expected to keep interest rates unchanged, but traders will closely monitor their post-meeting statements for clues on the timing of any future monetary policy moves.

Gold prices rose in the European market on Tuesday for the first time in the past five days, holding above a three-week low, amid increased buying activity from low levels. The strong rise of the US dollar against a basket of global currencies limits the extent of this recovery.

The Federal Reserve’s monetary policy meeting will begin later today, with decisions expected on Wednesday. Expectations point to keeping US interest rates unchanged for the fifth consecutive meeting.

In order to reprice the likelihood of an interest rate cut in September, markets are awaiting a series of key labor market data from the United States starting today.

Price Overview

• Gold prices today: Gold rose by 0.45% to ($3,329.94), from the opening level at ($3,314.77), and recorded the lowest level at ($3,308.10).

• Upon Monday’s price settlement, gold lost 0.7%, in its fourth consecutive daily loss, and recorded its lowest level in three weeks at $3,301.94 per ounce, due to the strength of the US dollar.

US Dollar

The dollar index rose on Tuesday by more than 0.4%, extending its gains for the fourth consecutive session, recording a five-week high at 99.05 points, reflecting the continued rise in the US currency against major and minor currencies.

This rise comes amid easing concerns about a US economic slowdown following recent trade agreements concluded by the United States with Japan and the European Union.

Additionally, strong economic data indicated that the Federal Reserve may take longer before resuming interest rate cuts.

Federal Reserve

The Federal Reserve’s important monetary policy meeting will begin later today, with decisions expected on Wednesday. Expectations point to keeping US interest rates unchanged for the fifth consecutive meeting.

The monetary policy statement and comments from Federal Reserve Chair Jerome Powell are expected to provide strong and clear guidance on the future of interest rates in the United States during the remainder of this year.

US Interest Rates

• According to the CME Group’s FedWatch Tool: The probability of a 25 basis point interest rate cut at today’s meeting is priced at 3%, while the probability of keeping interest rates unchanged is priced at 97%.

• The probability of a 25 basis point interest rate cut at the September meeting is currently priced at 64%, while the probability of no change is priced at 36%.

• To reprice the likelihood of a September cut, markets are awaiting a series of key labor market data from the United States. Today, the Job Openings report for the end of May will be released, followed by private sector employment data on Wednesday, weekly jobless claims on Thursday, and the July jobs report on Friday.

Gold Performance Outlook

• Tim Waterer, Chief Market Analyst at KCM Trade, said: Trading gold at around $3,300 or lower still attracts buyer interest. While short-term market dynamics — thanks to trade agreements and the strength of the US dollar — do not support gold, there remains potential for upside in the future.

• Waterer added: If weaker US economic data emerges, or if Trump’s criticism of the Federal Reserve pushes the central bank to adopt a more dovish stance this week, that could be positive for gold.

SPDR Fund

Gold holdings at SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, declined yesterday by about 0.86 metric tons, bringing the total down to 956.23 metric tons, retreating from the 957.09 metric tons that marked the highest level since June 23.