Ether shot up 8% as traders got more optimistic about a possible breakout to new all-time highs. Bitcoin stayed steady after a strong week, thanks to ongoing ETF inflows. Investors are feeling riskier again now that inflation numbers are going down and the dollar is getting weaker.
Are ETFs driving the crypto rally?
Ether (ETH) is leading the way as the cryptocurrency market rises again. In 24 hours, it went up 8%, and in a week, it went up 20%. Traders are watching Ether closely to see if it can reach new all-time highs now that inflation data is starting to cool off and there is a lot of optimism about exchange-traded funds (ETFs).
Bitcoin (BTC), the biggest cryptocurrency, has also had a good week. It has gone up more than 6.6% and is now worth close to $118,300. BTC didn’t break through the $120K level with conviction, but institutional inflows are still helping it.
On Wednesday alone, U.S. spot bitcoin ETFs saw net inflows of $799 million, which was the tenth day in a row of gains. BlackRock’s IBIT brought in a huge $763 million, making it the biggest contributor.
Everything is going up in the world of crypto. In one day, XRP went up 6.4%, and in one week, it went up 27%. The price of Solana (SOL) went up 5% to $170, and the price of Dogecoin (DOGE) went up 6% to more than $0.20. BNB rose almost 3% to $708, and TRX, the currency of Tron, rose 3.7% to 31 cents.
The crypto market as a whole has risen for the second day in a row. This is because people are feeling more secure and the economy is getting better.
A lot of this recent strength is because of the big picture. Investors were less worried after the U.S. CPI print in June, which made them think that rates might go down in the future.
The U.S. dollar index (DXY) has dropped about 10% this year, which is good news for assets that are priced in dollars, like crypto. A crypto rally is likely to happen because of the lower inflation, the weaker dollar, and the demand from ETFs.
Can Bitcoin really reach $150K by Q3?
Some people, however, are not sure that the rally will last. Traders at QCP Capital said that Bitcoin’s momentum seemed to fade as soon as it went above $120,000. They also saw signs that stocks might be slowing down because of the season or getting tired. They said that buyers are starting to come back into a new support zone between $114,000 and $118,000. However, they also warned that there might be a lull coming.
There are still a lot of people who are bullish, even though that warning was given. Ryan Lee, who is in charge of research at Bitget, said that Bitcoin’s future looks good as we move into the third quarter. He said, “The road to $150,000 by Q3 looks more and more likely,” pointing to strong ETF inflows, problems on the supply side, and good macro trends.
The current situation is very different from the crypto winter of 2022, no matter what happens with the rally. Institutional investors are getting involved more often, rules are becoming clearer, and traditional finance is becoming more open to digital assets in ways that have never happened before.
What’s helping Ether outperform this week?
It’s really interesting that Ether has gotten so strong so quickly. Things are starting to move in the right direction for a possible breakout as traders wait for more information from regulators about ETH ETFs and keep an eye on how useful the network will be in the long term. If the macroeconomic situation stays the same and ETF momentum keeps going, Ether could be the next coin to hit new highs.
The crypto market seems to be very active right now, and it looks like Bitcoin and Ether are more likely to break out big than they have been in months.
Also read: Debunked: Elon Musk’s $50 Billion XRP Buy Is Pure Fiction
