Bitcoin and Ethereum prices pullback, technical analysts follow the CME futures gap

Core inflation data in the U.S. has been below expectations for five consecutive months, but there is disagreement in the market regarding future trends. Some opinions suggest that the impact of tariffs will become apparent in July and August, while others emphasize companies' pricing restraint amid weak demand. There are also differing opinions within the Federal Reserve: the chairman hinted at possibly lowering the threshold for rate cuts, while another Fed president advocated for maintaining a tighter policy for a longer period. Currently, the Federal Reserve tends to adopt a wait-and-see approach and emphasizes caution against misleading short-term data.

In terms of regulation, the U.S. Congress has accelerated the legislative process by establishing "Cryptocurrency Week," during which a certain bill will bring the stablecoin market under a regulatory framework. This initiative aims to regulate the market while achieving dual strategic goals: supporting compliant stablecoins and weakening offshore competitors; creating a demand pool for U.S. Treasury bonds to alleviate the fiscal deficit. This shift in regulatory paradigm may strengthen Bitcoin's position as a digital gold asset allocation.

Bitcoin entered a consolidation phase after reaching an all-time high of $123,000. Several analysts believe the price may pull back to the range of $113,800 to $117,000 to fill the CME futures gap, after which a new round of increases could follow. Some analyses indicate that if the price cannot quickly drop below the current consolidation area, it may push Bitcoin back up to around $120,000. Other viewpoints suggest that the market has not yet peaked, with the next key level being $136,000.

Ethereum's market cap share has surpassed 10%, with analysis suggesting that the trends of stablecoins and tokenization are driving its demand growth. On the technical side, several analysts are focusing on its CME gap, believing that after filling the gap between $2,830 and $2,925, Ethereum is likely to break above $3,200.

The altcoin market is showing sector rotation: payment tokens are starting first, while large-cap coins are gathering momentum, and some ecological projects and Layer 1 projects are forming a relay team. The popularity of Chinese Meme narratives remains strong, with several related tokens hitting all-time highs.

In terms of key data, the Bitcoin price is $117,798, and the Ether price is $2,934. The Fear and Greed Index is at 71, indicating a greedy zone. A total of 106,515 people were liquidated globally in the last 24 hours, with a total liquidation amount of $355 million. Bitcoin ETF and Ethereum ETF have seen net inflows for 9 and 8 consecutive days, respectively.

Recent important events include: a certain wallet will conduct a token version TGE, Eclipse will open a token airdrop, and the U.S. House of Representatives will hold a hearing on digital asset tax policies. In addition, several projects will unlock tokens in the near future.

The tokens with the largest market increase include Staika, Osaka Protocol, PepeCoin, etc. In hot news, a certain bank has launched Bitcoin and Ethereum spot trading services, some projects are conducting token repurchases, and there are large institutional purchases of ETH, etc.