Bitcoin Stays Below $120,000 as Ether Approaches $4,700
Crypto markets saw increased gains as traders reacted to political factors, expectations of a dovish Federal Reserve, and significant ETF inflows into ether (ETH).
- Ether gained nearly 30%, approaching historical highs that often lead to market rotations in altcoins.
- ETFs linked to ETH reported $520 million in positive flows on Tuesday, aiming for over $2 billion in weekly flows.
- Bitcoin (BTC) remained steady near $120,000.
- Solana’s SOL surged 12% to $198, BNB Chain’s BNB added 5% to $837, and XRP rose 4% to $3.25.
- Dogecoin (DOGE) and Cardano (ADA) also increased by over 8%.
- Comments from U.S. President Donald Trump regarding crypto in retirement plans boosted sentiment.
- Implied volatility for BTC is near all-time lows, indicating stable price expectations, while ETH’s short-dated volatility has risen, suggesting anticipated price swings.
- Market anticipates a potential rate cut by the Federal Reserve before year-end, easing conditions for risk assets.
- Analysts view Ethereum's breakout and Bitcoin's stability as signs of resilient demand and potential for further gains.
- The next major target for Bitcoin is between $135,000 and $138,000, while Ethereum approaches its all-time high above $4,800.