In brief
- Bitcoin trades between $117k-$119k, ranging within a $115k-$119.9k band for 11 days after a weekend rally saw a 2% Monday decline.
- Ethereum attempts the price milestone of $4,000, fueled by record-moving ETF inflows and growing derivatives activity.
- XRP sentiment appears to be improving as investors hope for clarity surrounding its legal status.
Bitcoin’s rally during the weekend that attempted to push the cryptocurrency back towards its record high hit proved short-lived, as the world’s largest crypto logged a 2% decline Monday.
Having seen prices extend to $119,784 following a potential catalyst linked to US-EU trade discussions, BTC quickly settled back into a trading range.[Cryptocurrency market volatility]
However, Steve Gregory, founder of crypto trading platform Vtrader, anticipates further growth despite muted price action.
“I think the next leg up takes us to $139,000,” Gregory told Decrypt.
Ethereum Battles the $4,000 Threshold
Meanwhile, Ethereum continues to demonstrate significant strength as it approaches, for the fourth time, the long-awaited $4,000 price level.
Ethereum boasts a substantially stronger balance sheet compared to Bitcoin within the derivatives market, featuring the highest open interest ($71 billion vs $37 billion) and trading volume for global perpetual futures, indicating focused attention.
Shashank Sripada, COO & Co-founder of GAIA, characterized the structural outlook as “healthy,” noting strong inflows via spot ETFs ($5 billion+) but also cautioning the absence of a strong near-term catalyst beyond these institutional funds.
“Structurally, Ethereum looks healthy,” Sripada told Decrypt. “But… lacks a near-term catalyst beyond ETF flows.”
He predicted a retest of the $4,500-$4,800 zone is plausible if the token clears the $4,000 level with volume.
Gregory concurred on the bullish trajectory and institutional appetite.
“Most of ETH’s gains have come in the last six weeks,” Gregory remarked. “Expect a swift and powerful uptrend to all-time highs soon.”
Institutional Appetite Drives Altcoin Shift
Shawn Young, chief analyst of MEXC Research, attributes the changing landscape towards institutional adoption partly by “accumulation driven by both institutional whales and corporate treasury firms’ appetite.”
While Bitcoin and Ethereum command primary institutional focus, there’s increasing interest among crypto natives. Gregory highlighted retail interest in specific alts as a driver.
“Retail interest in Solana and XRP is basically the only tangible altcoin gains we’ve seen,” Gregory noted.
Light at the End of the Tunnel: Regulatory Factors & Next Data
XRP’s sentiment is buoyed by rumoured regulatory clarity following the potential passage of the GENIUS Act alongside anticipated US-Bitcoin ETF developments, with the upcoming CLARITY Act seen as a potential catalyst.
Upcoming macro data, particularly US inflation figures and the Fed’s decision, are typically key for risk-on assets. Gregory finds the recent M2 money supply hitting record highs more impactful than upcoming Fed commentary.
Young, however, suggests softer inflation data or dovish Fed commentary could spark a broader risk-on shift, potentially pushing Ethereum toward $4,500.
