The cryptocurrency market saw a 1.93% increase in the last 24 hours, with weekly gains of +8.82% continuing. Key factors behind this performance are: institutional accumulation of ETH and BTC, regulatory support, and ecosystem growth that boosts risk optimism.
1. Ethereum Momentum
ETH ETFs reached assets under management of $32.6 billion, increasing demand from large investors.
2. Access of cryptocurrencies to 401(k) retirement plans
An executive order from Trump opened the possibility of investing $12.2 trillion in retirement capital into cryptocurrencies.
3. Binance Dominance
BNB reached an all-time high, with corporate treasury inflows of $1.5 billion, supporting ecosystem tokens.
Detailed Analysis
1. Institutional Accumulation on Ethereum (Positive Impact)
Ethereum-based investment funds saw inflows of $268 million last week, while ETH reserves on exchanges hit their lowest levels in years. The Lido platform also reported $153.8 billion in staked ETH, indicating long-term investor confidence.
What this means: Institutions are turning to ETH as a yield-generating asset, reducing selling pressure.
What to watch: Resistance level at $4,300 for Ethereum; breaking it could trigger $1.32 billion in short position liquidations.
2. Regulatory Support (Positive Impact)
Trump's decision to allow cryptocurrencies in 401(k) retirement plans reduced regulatory uncertainty, alongside the Commodity Futures Trading Commission (CFTC)'s efforts to issue crypto-friendly rules (OndoFinance). Bitcoin ETF assets also rose to $149.8 billion, helping absorb selling pressure.
What this means: Policy changes enhance the legitimacy of cryptocurrencies in traditional investment portfolios.
3. Growth of the Binance Ecosystem (Divergent Impact)
The market cap of Binance reached $4.02 trillion (+1.95% in 24 hours) after a partnership with BBVA and increasing popularity of Valoris games. However, Bitcoin dominance rose to 59.95%, limiting the upside potential of altcoins.
What this means: Institutional reliance on Binance concentrates capital, creating a quality disparity between major and minor currencies.
Summary
The current rise reflects the confluence of institutional accumulation on ETH, clarity in regulatory frameworks, and Binance dominance. However, the high relative strength index (84.6) and $115 million in Bitcoin liquidations call for caution. Traders are advised to monitor U.S. Consumer Price Index data today (August 11) for signals on interest rate cuts that may bolster or reverse this momentum.
Will the supply shock in ETH overcome major economic challenges? Watch the $4,300 level and its correlation with the Nasdaq (7 days: +0.87).