Crypto euphoria tempers as Bitcoin looks ahead to a potentially "historic" July

The cryptocurrency market is calm for now. Bitcoin (BTC) has dropped 0.6% in the last 24 hours, although it remains above $30,300, while Ethereum (ETH) has fallen more than 1% and moves away from $1,900.

Momentum created by multiple applications for Bitcoin spot ETFs, a move led by BlackRock, propelled the reigning cryptocurrency above $30,000 last week, although that momentum seems to have dissipated now. Past the initial euphoria, investors now assess that any approval by the Securities and Exchange Commission (SEC) could be months away.

"We've seen some consolidation in Bitcoin in recent days after it hit fresh highs for the year late last week. There's been no shortage of crypto newsflow but the excitement around an ETF may well be what's pulled traders back in. Either way, it promises to be an intriguing and potentially volatile second half to the year as we await the outcome of that and the action brought against various exchanges from the SEC​," explained Craig Erlam, senior market analyst at OANDA.

Nevertheless, there is some optimism heading into next month, as July has historically been a good period for the reigning cryptocurrency, which has risen 24%, 20% and 27% over the past three years. Experts such as Markus Thielen, research director at Matrixport, point out that BTC could reach $36,000 over the next few weeks.

Meanwhile, other analysts highlight that the expiration this coming Friday of Bitcoin options contracts could give an additional boost to the price of the world's largest crypto.

On the other hand, the market is starting to believe the Federal Reserve (Fed) and is already contemplating an interest rate hike of 25 basis points in July. There are also expectations of another one after this hypothetical hike. According to Ipek Ozkardeskaya, senior analyst at Swissquote Bank, "a set of soft data could do the magic of bad news is good news, and investors could gently return to longer-term quality bonds, as despite what the Fed says, the end of tightening is certainly near."

"We saw a heavy slump in open interest in US government bonds as a result of waning dovish bets, but we also see the US 2-year yield slump below a two-month rising trend this morning, as the 10-year yield remains paralyzed a touch below the 3.75% level," she noted.

In other market news, there have been similar declines to BTC and ETH in the major altcoins. Ripple (XRP) drops 1% and Cardan (ADA) and Solana (SOL) fall 2%.