Bitcoin & Ethereum Hit Highs on ETF Inflows, Fed Cut Hopes
Bitcoin and Ethereum reached fresh record highs, lifting the total crypto market cap past $4.18 trillion. Bitcoin climbed over 3.5% to about $128,000. Ethereum rallied 59% this month to near $4,750.
Investor hopes for Fed rate cuts, underpinned by benign U.S. inflation data, boosted demand. Spot Bitcoin ETFs saw $1.16 trillion in net inflows, led by BlackRock’s IBIT. Ethereum ETFs added $141.5 billion.
Supportive policy moves—Trump administration’s reserve-asset designation for Bitcoin and Congress’s GENIUS Act for stablecoin regulation—have driven institutional interest. USDC growth and Circle’s IPO underline Ethereum’s expanding ecosystem. Corporations now hold $15.7 billion in Bitcoin and over $13 billion in Ethereum as treasury assets.
On-chain signals and technicals suggest a possible short-term pullback. Bitcoin’s hash rate fell from 965 EH/s to 892 EH/s. A bearish MACD divergence and a potential double-top near recent highs point to support at $112,000.
Traders should track Fed announcements, ETF flows and hash rate trends for market direction.
Bullish
Record highs in Bitcoin and Ethereum reflect strong institutional demand and growing hopes for Fed rate cuts. Unprecedented inflows into spot ETFs signal sustained capital entry. Regulatory support and stablecoin growth enhance ecosystem fundamentals. These factors underpin a bullish outlook, with continued upside potential despite possible short-term retracements to key support levels.