Market Overview
The cryptocurrency market closed the week with mixed movements, showcasing strong gains in altcoins while Bitcoin maintained a steady range. Investor sentiment remained cautiously optimistic, driven by ETF inflows, policy developments, and bullish on-chain trends.
Bitcoin (BTC) Holds Firm Above $114K
Bitcoin stayed resilient, trading between $114,000 and $118,000 throughout the week. Midweek, it touched a high near $117,600 before easing slightly. A surge in ETF inflows, particularly from institutional players, provided underlying support for price stability.
Policy updates in the United States further boosted sentiment, with new allowances enabling crypto investments in certain retirement accounts. This shift could open the door to billions in potential inflows over the long term.
Ethereum (ETH) Steals the Spotlight
Ethereum delivered one of its strongest weekly performances in recent months, breaking above the $4,000 threshold and reaching highs near $4,170. Strong demand from spot ETFs and growing institutional interest fueled the rally.
Analysts point to historical trends showing August often favors ETH in post-halving years, a factor adding confidence to the bullish sentiment.
Altcoins Gain Momentum
The altcoin market experienced notable gains, with Cardano (ADA) surging almost 19%, breaking through the $0.75 resistance and closing near $0.81. Whale accumulation trends extended beyond ADA, with significant interest in meme tokens such as DOGE, SHIB, and BONK, signaling a revival in speculative trading activity.
Broader Market Signals
While altcoins outperformed, Bitcoin’s steady range raised caution flags among some traders. A narrowing ETF futures basis and a rapid rise in alt dominance could indicate an overheated market in the short term. However, strong on-chain metrics suggest underlying demand remains intact, keeping the door open for another breakout.
Key Takeaways
- Bitcoin remains rangebound but is supported by steady institutional inflows and favorable policy developments.
- Ethereum leads the market with a breakout above $4K, fueled by ETFs and seasonal bullish patterns.
- Altcoins shine as whales accumulate both established projects and meme tokens, driving speculative momentum.
- Market caution advised due to rising alt dominance and compressed futures spreads, signaling possible short-term corrections.
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