Ethereum ETF Surge Sets Record—ETH-linked ETFs are on track for $2B weekly inflows, the highest in the token’s history.
Altcoins Drive Bitcoin’s Rally – Unusual market dynamics see altcoin strength lifting BTC toward $138K targets.
Policy and Fed Expectations Boost Momentum—Political backing and rate-cut bets fuel crypto’s strongest rally in months.
Crypto markets also continued to rally on Wednesday as political rallying, dovish Federal Reserve anticipation, and high ETF inflows increased the sentiment. The lead was provided by Bitcoin and Ethereum, followed by altcoins and microcap tokens, to make the move in the upward direction. This kind of momentum showed a change in macro conditions and the rejuvenation of crypto adoption.
The demand of ETFs gives impetus to Ethereum Power
Ether went up by almost 30 percent over a week, going close to significant tops that significantly do indicate altcoin rotations and market-wide rallies. On Tuesday, Ethereum-linked ETFs saw $520 million in positive flows, the closest it has ever been to ETF inflows of $2 billion during the week. It was the highest demand on Ethereum ETFs in a week in the history of ETH.
Ethereum short-dated implied volatility surged, suggesting that an increase in price variability could be expected in the near term and a possible upside. Bitcoin by comparison had an implied volatility that was close to record lows, indicating a perception of price stability relative to other assets. The disagreement pointed towards an increased interest in Ethereum by traders who demanded temporary variation.
In expectation of institutional adoption, the price of the token rose over the $4,600 mark. Ethereum’s outperformance was also contributed to by the stringing upgrade as well as the expected approvals of exchange-traded funds. Excess buying in spot and derivatives drove the buying further.
Bitcoin continues to have strong direction
Bitcoin was exchanged at almost 119K, and it demonstrated stable demand due to changing market factors. The recent developments complied with Ethereum because, in most cases, Bitcoin would lead altcoin rallies. Analysts cited strange pricing action where the altcoin price action seemed to prop up the price of Bitcoin.
The asset touched their lifetime high at about $122,000 and a possible target area of $135,000 to $138,000. The political signals that had favored market sentiment involved the interest of the U.S. administration in the exploration of cryptocurrency as one of the 401(k) retirement plan options. Although the shift was preliminary, it was a possible change in the structure of long-term demand.
Low volatility of the Bitcoin indicated that traders expected to maintain stability even with the rally. Nonetheless, any move above existing resistance may even generate some volatility and impetus to the new technical levels.
Macro Tailwinds and Policy perspective
The market anticipation of a 50 basis point The Federal Reserve rate cut in September gave an additional boost to the gains in crypto markets. Risky assets, including cryptocurrencies, had felt the pressure as markets priced a high likelihood that the Fed would cut rates by the end of the year. Low rates promoted movement of capital into high-growth and alternative asset classes in the past.
Continued macro support and a flood of ETF inflows led to a positive market backdrop with regard to both Bitcoin and Ethereum. More favorable market sentiment was also achieved by providing political support to the broader use of crypto. All this aligned to keep buying pressure throughout major tokens and altcoins.
The proximity of Ethereum to its all-time high of above 4,800 and Bitcoin to the new firsts placed the two in possible breakouts. All that was a mixture of powerful inflows, technical power, and policy tailwinds, indicating further upside in the short run.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
<p>The post Crypto Markets Extend Gains as Ether ETF Flows Surge and Rate-Cut Bets Strengthen first appeared on Coin Crypto Newz.</p>
