Recently, the cryptocurrency market's activity has significantly increased, with Bitcoin breaking key levels and Ethereum approaching historical highs; favorable policies and institutional funds have become the main driving forces. Meanwhile, the meme coin sector shows clear divergence, with emerging projects standing out due to their practicality.
#Bitcoin #Ethereum lead the rise: Policies and institutional funds are the core driving forces
This week, Bitcoin's price broke through the $122,000 mark, reaching a high of $122,064; Ethereum similarly strengthened, with its price climbing above $4,300, setting a new high since December 2021, coming closer to the historical peak of $4,878.
The market's activity is significantly boosted by U.S. President Trump's executive order—this order allows 401(k) retirement plans to include cryptocurrencies, private equity, and other alternative assets, likely attracting millions of retirement account funds into the market.
Augustine Fan, Director of Insights at SignalPlus, noted that this policy directly drove the market rebound. Institutional fund inflows are also strong: Bitcoin spot ETF saw a net inflow of $253 million in one week, while Ethereum ETF weekly inflows reached $461 million, surpassing Bitcoin, indicating a warming preference for Ethereum among institutions.
At the macro level, the market is focused on the U.S. CPI and PPI data to be released this week, which will impact the Federal Reserve's interest rate cut expectations for September. Currently, CME FedWatch shows an 88.4% probability of a 25 basis point rate cut in September, with easing expectations further supporting the sentiment for risk assets.
#Ethereum How much room for growth? AI predicts the cycle peak could reach $15,000
After Ethereum broke through the key area of $4,000, analysts generally hold a positive outlook on its structural upward trend. Crypto analyst Miles Deutscher pointed out that Ethereum's daily and weekly closing prices have both stabilized in this area for the first time since November 2021, confirming the upward momentum.
According to the forecast, Deutscher estimates through AI models that by the end of 2025, the probability of Ethereum returning to its previous high point (around $4,700) is 75%, the probability of breaking through $5,000 is over 60%, and reaching $6,000 has a probability of about 30%; extending to the end of 2026, the probability of breaking through $10,000 rises to 18%. Another AI model, Grok, is even more aggressive, believing that its benchmark price could reach $10,000, with the cycle peak range possibly between $8,000 and $15,000.
On the positive side, ETF funds continue to flow in (with a net inflow of $17 billion in cryptocurrency ETFs over the past 60 days), retirement accounts opening access, and the U.S. (GENIUS Act) clarifying the regulatory framework for crypto assets, all providing structural support for Ethereum—being the core blockchain for asset tokenization and DeFi, Ethereum has become the preferred target for institutions in this field. However, risks must be heeded: if it breaks below the key daily level of $3,400, the short-term bullish logic may fail; stabilizing above $4,000 may lead to a challenge of historical highs.
#MemeCoins Divergence: #SHIB is favored, #LBRETT becomes a potential winner in the cycle
The meme coin sector is showing signs of divergence. Dogecoin (DOGE) has a large community base, but its growth relies on speculation; analysts predict its peak in 2025 could reach $0.731 (an increase of 326%), but its reliability is lower than projects with stronger practicality.
Shiba Inu Coin (SHIB) has recently gained attention due to a surge in the token burn rate of 3465%, with 9.81 million SHIB burned in a single day; the reduction in circulating supply is seen as a bullish signal. Meanwhile, the emerging project Layer Brett (LBRETT) is viewed as a potential winner in this cycle—the token is built on Ethereum Layer 2, combining high speed and low fees, and offers substantial staking rewards during the presale phase (at $0.004), with impressive annual yields.
Unlike DOGE and SHIB, which rely on speculation, LBRETT adds practicality, covering scalable trading and future DeFi functions, and its low initial market cap gives it 100x growth potential, making it a focal point for early investors.
Article Summary
The current cryptocurrency market remains strong under the resonance of favorable policies, institutional funds, and technological breakthroughs, with Bitcoin and Ethereum leading the main trend, while meme coins are encountering new opportunities amid divergence. For investors, it's crucial to pay attention to macro data, ETF fund flows, and key technical breakthroughs while grasping trends and being wary of short-term volatility risks.
