The encrypted currency market showed a small warming when it entered July. Bitcoin (BTC) returned to $63,000 on 4 July 2026, but subsequently stalled. According to CoinGecko, the BTC has increased by 0.7 per cent in the last 24 hours and 5.8 per cent in the past week. Other encrypted assets also follow the movement of the BTC. This paper will discuss the reasons for the small warming of the market and the future of the encrypted money industry.
Reasons for market warming
In June 2026, the decline in the encrypted currency market was mainly affected by inflation. In May 2026, the Consumer Price Index (CPI) climbed to 4.2 per cent. As a result, the Fed announced that interest rates would remain unchanged. However, Federal Reserve Chairman Kevin Walsh recently indicated that the inflation risk had been reduced and that interest rates might be considered for reduction.
Low rates of return on national debt and a weak dollar may also contribute to the recovery of the encrypted currency market. The weak United States dollar reduced the opportunity cost of holding bitcoin and prompted investors to retain the BTC. In addition, the ETF ' s financial inflows also recovered after the bear market in June.
How's the future going?
A major factor influencing market movements was the war between the United States and Iraq. As tensions escalate, there appear to be no sign of a peace agreement. If the war escalates, it could trigger another energy crisis, thus putting pressure on the economy as a whole. This development may lead to the revision of the price of the encrypted currency market.