Bitcoin Price Analysis: BTC Rebounds After Tuesday Decline, Reclaims $118,000

Bitcoin (BTC) has recovered after a substantial decline on Tuesday, when it plunged to a low of $115,701 before settling at $117,682. The flagship cryptocurrency is up almost 1% during the current session, trading around $118,447. Despite Tuesday’s decline, analysts believe it is unlikely for BTC to see a prolonged correction in the near term. Cantor Fitzgerald Closes In On Deal With Early Bitcoin Supporter Brandon Lutnick, Chair of Cantor Fitzgerald and son of US Commerce Secretary Howard Lutnick, is closing in on a $4 billion deal with an early Bitcoin supporter to buy billions worth of BTC using a blank cheque vehicle backed by Cantor Fitzgerald. Cantor Equity Partners 1, a black cheque vehicle that raised over $200 million in an initial public offering, is in late-stage talks with Adam Beck, founder of Blockstream Capital, to buy $3 billion in Bitcoin. The deal mirrors a deal Brandon struck with SoftBank and Tether in April, advancing Cantor Fitzgerald’s strategy of using publicly-listed shell companies to buy Bitcoin. The deal could see Beck contribute 30,000 BTC to Cantor Equity Partners 1, worth over $3 billion, part of a broader deal with the blank cheque company to raise as much as $800 million in outside capital to fund future Bitcoin purchases. Beck and Blockstream would contribute their holdings in exchange for shares in the Cantor vehicle. According to sources, a deal could be concluded as early as this week. The deal will make Cantor one of the world’s largest and most active Bitcoin buyers, using blank cheque vehicles led by Brandon, who was named chair after his father, Howard Lutnick, joined the Trump administration. Crypto Spot Trading Down Despite Bitcoin Rally Crypto spot trading fell 22% in Q2 2025, extending its decline despite ongoing bullish sentiment. Crypto spot trading fell from $5.3 trillion in Q4 2024 to $4.6 trillion in Q1 2025. Spot crypto trading volumes on major centralized exchanges fell even further, dropping to $3.6 trillion in Q2, according to data from crypto analytics platform TokenInsight. The downturn in spot market trading comes amid a decline in altcoin trading activity and liquidity in Q2, contrasting with the resilience in the derivatives market. “Traders maintained their Q1 preference for high-frequency derivatives trading amid market uncertainty, aiming to hedge risks and leverage volatility.” Bitcoin (BTC) Price Analysis Bitcoin (BTC) ended the weekend on a bullish note, registering an increase of nearly 2% and settling at $118,624. Bullish sentiment intensified on Monday as the price surged to an intraday high of $123,091 before declining and settling at $119,714. Selling pressure returned on Tuesday as traders locked in their profits after the flagship cryptocurrency surged to record levels. As a result, BTC fell to an intraday low of $115,701 before settling at $117,682. Despite Monday’s substantial drop, analysts don’t believe Bitcoin will enter a downtrend anytime soon. According to analysts from 21Shares, robust fundamentals are supporting the cryptocurrency’s current trajectory. “The structural imbalance between surging demand and a rapidly vanishing supply base makes a prolonged correction increasingly unlikely. There are far more positives than negatives right now.” According to Matt Mena, the current rally is being driven by spot Bitcoin ETFs and Bitcoin treasury companies, with retail demand almost absent. “US-listed Bitcoin ETFs have already absorbed several multiples of the BTC that will be mined this year. That doesn’t even include corporate treasury buyers, who continue to add quietly in the background.” While Mena believes BTC’s bullish trajectory will continue, he cautioned that a reversal cannot be ruled out due to macroeconomic factors. “It is certainly possible that Bitcoin consolidates, or even sees a pullback. If Trump’s proposed tariffs end up being more severe than markets currently anticipate, or if Powell signals that rate cuts are further off than expected, we could see risk assets broadly reprice lower, including Bitcoin.” BTC crossed $110,000 on Thursday (July 3) but lost momentum after reaching this level and fell 1.41% to $108,097 on Friday. The price recovered over the weekend, rising 0.19% on Saturday and nearly 1% on Sunday to settle at $109,231. Despite the positive weekend, BTC was back in the red on Monday, dropping almost 1% to 108,273. It recovered on Tuesday, rising 0.62% and settling at $108,942. Buyers retained control on Wednesday as the price rose over 2% to cross $111,000 and settle at $111,255. Bullish sentiment intensified on Thursday as BTC registered a 3.51% increase and moved to $115,159. Source: TradingView BTC continued pushing higher on Friday, rising 1.50% to cross $116,000 and settle at $116,885. Despite the positive sentiment, the price registered a marginal decline on Saturday. However, it recovered on Sunday, rising nearly 2% to cross $118,000 and settle at $118,624. Bullish sentiment intensified on Monday as BTC surged past $120,000 to set a new all-time high of $123,091 before declining and settling at $119,814, ultimately registering an increase of 0.92%. Selling pressure returned on Tuesday as BTC plunged to a low of $115,701 before settling at $117,682. The current session sees BTC up nearly 1%, trading around $118,417. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Bitzo