Quick overview

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The broader crypto ecosystem is also on the rise, with widespread gains across major tokens. Among the top 20 cryptocurrencies, prices are up as much as 9.3%, led by PI, followed by Dogecoin and Avalanche, both gaining 3.3%.

The cryptocurrency market continues its bullish momentum this Wednesday. Bitcoin (BTC) is edging higher, trading around $103,900 on Binance, while Ethereum (ETH) is up 2.3% to $2,600, capping off a 7-day rally of over 40%.

Words of Advice

Despite the positive sentiment, some analysts caution that this recovery may be nearing a ceiling. The strengthening of the U.S. dollar—driven by recent tariff announcements—has acted as a natural brake on digital assets. This pressure is further compounded by Bitcoin’s proximity to its all-time highs, which is prompting some profit-taking after a rally that has lasted over a month.

Still, risk appetite appears to be returning to the markets. Investors are reacting positively to several recent developments: a trade agreement between the U.S. and China, lower-than-expected U.S. inflation data, and fresh investment commitments from Saudi Arabia in the United States—all of which have created a more optimistic environment.

Additionally, Coinbase’s recent inclusion in the S&P 500 has served as another bullish catalyst for the crypto space. It’s the first company in the sector to join the prestigious stock index, further solidifying the industry’s institutional legitimacy.

Capital Flows and Technical Analysis

On the capital flow front, data from CoinShares shows $882 million in institutional inflows into crypto funds last week—marking the third consecutive week of strong entries. Bitcoin attracted the lion’s share with $867 million, while Ethereum, despite its strong recent performance, brought in just $1.8 million.

Ethereum has gained over 40% since its April lows and has confirmed a trend reversal after breaking above its 200-day moving average. A retest of Bitcoin’s all-time high near $110,150 now seems imminent. Should that resistance break, a rally extension toward $130,000 cannot be ruled out.