Key Takeaways:
Bitcoin steadies near $118,300 as ETH and altcoins outperform on risk-on sentiment.
Ether jumped 8% and is up 20% in 7 days, with traders eyeing a breakout to new highs.
Spot Bitcoin ETFs recorded their 10th straight day of inflows, led by $763M into BlackRock's IBIT.
A weakening dollar and cooling U.S. inflation are boosting appetite for digital assets.
Analysts remain divided on Bitcoin’s momentum, with $150K in play if macro tailwinds hold.
Bitcoin (BTC) remained firm near $118,300 on Wednesday, gaining 6.6% for the week, as crypto markets turned broadly risk-on following cooler-than-expected U.S. CPI data and another wave of ETF inflows.
However, the spotlight is increasingly shifting toward Ether (ETH) and altcoins, as ETH surged 8.1% to over $3,560 — its strongest single-day move since March — and now leads major tokens in weekly performance.
ETF Inflows Persist, But Market Rotation Emerges
U.S.-listed spot Bitcoin ETFs posted their tenth consecutive day of net inflows, attracting $799 million on Wednesday. BlackRock’s IBIT dominated once again, with $763 million in fresh capital.
Despite the strong inflow data, Bitcoin’s price movement remained muted, rising just 0.4% on the day, signaling a potential short-term plateau as traders begin to rotate into faster-moving assets.
ETH, meanwhile, held above $3,340, with a 20.5% gain over 7 days.
Altcoins Break Out as BTC Dominance Slips
Altcoins broadly outperformed BTC in the last 24 hours:
XRP: Up 6.4% to $3.09, 27% gain in 7 days
Solana (SOL): +5% to $170
Dogecoin (DOGE): +6%, trading at $0.212
BNB Coin: +3% to $708
TRON (TRX): +3.7% to $0.31
The rally underscores shifting market leadership amid falling BTC dominance, which could open the door to a deeper altseason if capital rotation continues.
Macro Tailwinds: CPI Cooldown and DXY Drop
The cooling U.S. CPI print helped ease investor nerves, strengthening the case for Fed rate cuts later this year — a scenario that typically benefits risk assets.
Traditional markets responded accordingly:
Gold edged higher
Asian equities dipped as traders reassessed Fed timing
U.S. equities showed mild weakness amid tariff uncertainty
Meanwhile, the U.S. Dollar Index (DXY) is down nearly 10% year-to-date, providing broad support to crypto and other risk-on assets.
Outlook: Traders Split Between Momentum and Pause
Despite strong ETF inflows, analysts are split on what’s next for BTC.
In a market note, QCP Capital said Bitcoin’s rally stalled after topping $120,000, with new support developing between $114,000 and $118,000. They flagged seasonal slowdowns and equity fatigue as possible headwinds.
However, Bitget’s Ryan Lee remained bullish:
“The road to $150,000 by Q3 looks increasingly plausible, powered by ETF inflows, supply constraints, and macro tailwinds like a weakening dollar and potential Fed cuts.”
