Leading cryptocurrencies moved sideways on Monday, July 6, as high-profile Bitcoin sell-offs were offset by growing optimism for a Strategic Bitcoin Reserve.

Bitcoin Dips And Then Rips

Bitcoin dipped to the mid-$61,000 range in early trading after Strategy Inc. (Strategy Inc. (MSTR)) reported selling 3,588 BTC for roughly $216 million last week.

Sentiment improved following Trump's reaffirmation of his pro-cryptocurrency policies during an Oval Office interaction with reporters. Later in the day, Bloomberg cited the White House saying the Trump administration "continues to evaluate the best structure" for a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.

Ethereum oscillated between $1,728 and $1,820 throughout the day, with trading volume surging 43% over the last 24 hours.

Over $500 million was liquidated from the cryptocurrency market in the last 24 hours, with nearly $300 million in bearish short positions erased, according to Coinglass data.

Market sentiment improved from "Extreme Fear" to "Fear," according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $2.21 trillion, following a modest increase of 0.48% over the last 24 hours.

Stocks Rally To Kick Off Big Week

Stocks started the fresh trading week on a high. The Dow Jones Industrial Average rallied 136.46 points, or 0.26%, for a record close of 52,319.20. The S&P 500 gained 0.79% to close at 7,499.36, while the tech-heavy Nasdaq Composite lifted 1.52% to settle at 26,213.72.

Investors are bracing for a week of major developments, including Elon Musk's Space Exploration Technologies Corp. (SpaceX (SPCX)) joining the Nasdaq 100 index before Tuesday's opening bell, and the debut of South Korean memory chip giant, SK Hynix, on Nasdaq this Friday.

What To Expect Next?

Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, reaffirms his Bitcoin thesis, noting a higher low formed and potential tests of recent highs in the days ahead.

"There's a lot of upside to come if Bitcoin breaks back in the range, as the liquidity will likely flow towards altcoins rather than Bitcoin," the analyst projected.

Ali Martinez, another influential cryptocurrency commentator, flagged $1,796 as the immediate resistance for Ethereum, with a daily close and hold above it strengthening the case for a rally to the realized price target of $2,245.