Despite a hesitant start, the crypto market has turned bullish, led notably by Ethereum's significant surge. However, Bitcoin, the largest cryptocurrency by market capitalization, continues to face challenges in reclaiming its previous momentum. Investor sentiment has been impacted by a substantial outflow of over $700 million from US Spot Bitcoin ETFs, contributing to cautious market sentiment and affecting risk appetite.

The optimism in the crypto market has been buoyed by global inflation cooling down, highlighted by the European Central Bank's first rate cut in several years. Moreover, encouraging US CPI and PPI data showing a moderation in inflation has heightened expectations of potential Federal Reserve rate cuts. Yet, these positive economic indicators have not immediately translated into positive momentum for Bitcoin or the broader cryptocurrency market.

Ethereum's recent price surge follows the conclusion of the US SEC's investigation into its security status, sparking optimism regarding the potential approval of a US Spot Ethereum ETF by July 2nd. This development has redirected investor attention towards lower-priced altcoins as they seek clearer regulatory signals before increasing their market participation.

Despite the current challenges faced by Bitcoin, market analysts maintain a positive outlook on its long-term trajectory. Historical patterns suggest potential peak periods for Bitcoin around December 2024 or October 2025. Presently, Bitcoin has recovered some ground and is trading at approximately $65,300, while Ethereum has surged nearly 4% to reach $3,560.

In summary, while Bitcoin grapples with recovery hurdles, the overall crypto market has demonstrated resilience, reflecting increasing investor confidence. As market dynamics evolve, the key question remains whether Bitcoin will manage to regain momentum and join the broader altcoin rally in the near term.