This week, the crypto market demonstrates positive trends due to political signals, expectations of Federal Reserve rate cuts, and institutional investment inflows into Ethereum.
Reasons for the Crypto Market Surge
The growth in optimism in the cryptocurrency market is driven by President Donald Trump's initiative to include cryptocurrencies in 401(k) retirement plans. This could lay the groundwork for significant structural demand from pension funds. Additionally, $520 million flowed into Ethereum-related ETFs in just one day, creating a forecast for a record $2 billion weekly.
Comparison with Bitcoin and Altcoin Trends
Bitcoin remains stable, holding just below $120,000, while altcoins are following Ethereum's dynamics. Solana surged 12% to $198, BNB climbed 5% to $837, and XRP gained 4% to $3.25. Dogecoin and Cardano also jumped over 8%, noting an unusual situation where altcoins are leading the market rather than Bitcoin.
Forecasts and the Impact of Future Fed Decisions
Some analysts believe that a possible 50 basis points reduction in September could boost further rallies in the crypto market. This opens up prospects for Bitcoin in the $135,000–$138,000 range and Ethereum close to its all-time high above $4,800. Overall, the current trend is supported by both political backing and powerful institutional investment inflows.
The surge of Ethereum and optimistic forecasts for the future indicate that the crypto market is set for further development. If the positive trend of institutional investments and political support continues, the remaining cryptocurrencies may also feel a positive impact.
