The cryptocurrency market kicked off the week with a surge in Bitcoin and Ethereum prices, prompted by President Trump's executive order regarding 401(k) retirement plans.
Bitcoin and Ethereum Reach New Heights
Bitcoin climbed to $121,000, up 3.33% in 24 hours, while Ethereum hit $4,300 — its highest level since December 2021. This rally was fueled not only by Trump's policy but also by strong inflows into ETFs. Bitcoin ETFs attracted $253 million this week, while Ethereum ETFs pulled in $461 million, showcasing heightened institutional demand.
Macro Events Could Test the Rally
Despite the bullish sentiment, analysts caution that upcoming macro data could challenge market resiliency. With CPI data due Tuesday and PPI on Thursday, traders are watching inflation numbers that could impact the Federal Reserve's rate decision. Although there is an 88% probability for a 25bps rate cut, Fed Chair Jerome Powell recently indicated that such a move is 'less likely' without favorable economic data.
ETH’s Edge Over BTC?
BTC Markets analyst Rachael Lucas notes that Ethereum's recent surge has even returned Vitalik Buterin to billionaire status, with short liquidations adding fuel to the rally. If institutional inflows continue at the current pace, Ethereum could surpass Bitcoin in the short term, potentially reshaping the leaderboard in this bullish phase.
The cryptocurrency market continues to gain traction, attracting investor interest through initiatives like Trump's executive order. However, upcoming macroeconomic data may influence the ongoing rally.
