Bitcoin and Altcoins Surge on Fed Rate-Cut Optimism and ETF Inflows

Published: 2025-08-13 15:42:31 |

Bitcoin and major altcoins rallied strongly on August 13. The Crypto Fear and Greed Index jumped into the “greed” zone. Fed rate-cut expectations rose after July’s inflation and jobs data. Traders now price in a possible rate reduction in September. Bitcoin broke above $122,000 resistance. Ethereum climbed past $4,700. Solana, Binance Coin and XRP also posted gains. Institutional demand fueled the move. Spot Ethereum ETFs saw over $1.7 billion inflows this week. Spot Bitcoin ETFs now hold $54 billion. Treasury companies and derivatives-based ETFs added positions. Cryptocurrency prices are also buoyed by bets on SEC approval for Solana, Cardano, Hedera Hashgraph and Dogecoin ETFs. Market sentiment remains risk-on. Equity indices such as the S&P 500 and Nasdaq 100 hit record highs. However, technical risks persist. Bitcoin may form a double-top at $123,000. A confirmed reversal could weigh on altcoins. Macroeconomic or recession concerns could also dampen momentum. Traders should monitor derivatives data and chart patterns as the rally unfolds.

Bullish

The surge in Bitcoin and altcoins on renewed Fed rate-cut bets and healthy ETF inflows points to a bullish market outlook. Historically, when the Fed signals easing monetary policy and inflation cools, cryptocurrencies have outperformed other risk assets. For example, in mid-2023, similar inflation data prompted a Fed pivot and sparked a 30% rally in Bitcoin over two months. Institutional demand underpins the rally. Spot Ethereum and Bitcoin ETFs recording multi-billion dollar inflows indicate growing confidence among large investors. This trend tends to drive prices higher as asset managers and treasury firms allocate more capital to digital assets. Short-term, traders may target the $125,000 level for Bitcoin and $5,000 for Ethereum. Monitor derivatives metrics and technical patterns for potential overextension risks. In the long run, continued regulatory clarity on ETFs for Solana, Cardano, Hedera and Dogecoin could sustain the bullish momentum by broadening market participation and liquidity.