Cryptocurrency Prices Have Started the Month Well as Ethereum Name Service (ENS) Has Risen by Over 30% in the Past 24 Hours

These cryptocurrencies rallied for two main reasons. First, they rebounded because of Bitcoin's performance on July 1st. BTC, the biggest cryptocurrency

Cryptocurrency prices started the month on a high note. ENS rose by more than 30% while Mog Coin, Notcoin, and LayerZero soared by over 5%. Other top performers were Dogwifhat, Beam, Ethena, and Ondo Finance.

Bitcoin price bounced back to $63,400, continuing its recovery from last week's low of $60,000. Despite the significant gains, there were no major crypto-related news over the weekend.

However, the gains in the crypto market mirrored those seen in the stock market after the French election results showed that Marine Le Pen's party won by a smaller margin than anticipated.

This outcome brought a sense of calm to the financial markets, with futures tied to the CAC 40 and Dow Jones indices rallying on Monday morning.

Bitcoin's rebound also occurred as investors bought the dip after the coin became oversold in June when it crashed below $60,000. Typically, altcoins like LayerZero, Mog Coin, Dogwifhat, and Notcoin tend to perform well when Bitcoin is rising.

These tokens also rose after the US published encouraging inflation data on Friday. According to the Bureau of Labor Statistics (BLS), the core personal consumer expenditure (PCE) inflation figure dropped for the first time in six months.

Both the headline and core PCE numbers fell to 2.6% in May, which is considered favorable for interest rates. Many analysts anticipate that the Federal Reserve will begin cutting interest rates later this year if inflation continues to moderate. Such an environment tends to be supportive of cryptocurrencies.

Other potential reasons for the rebound in these tokens include the fact that July 1st not only marks the start of the month but also the beginning of the third quarter. With most cryptocurrencies posting losses in the second quarter, this rebound could be driven by hopes of a broader rally in the third quarter.

Typically, stocks and cryptocurrencies either rebound or experience sharp declines at the start of the month or quarter.

Despite the gains, it remains to be seen whether these gains will be sustained, especially considering that Bitcoin has already formed a double-top chart pattern and moved below the 50-day and 100-day moving averages. As such, this rebound could also turn out to be a dead cat bounce, followed by another leg down.