Crypto Market Rally: BTC, ETH Reclaim Key Levels as Australia and Bolivia Move on Crypto Rules
The crypto market rallied this week with Bitcoin (BTC) and Ethereum (ETH) reclaiming key levels as traders priced in potential Fed rate cuts and a tech-led risk-on mood. BTC rose above $90,000, trading around $91,300 after reclaiming $90k earlier in the week. ETH recovered above $3,000, reaching about $3,036. Several altcoins including SOL, JUP, APT, XRP, DOGE and ADA saw modest gains. Futures and ETF flows indicate renewed institutional interest: spot Ethereum ETFs recorded four straight days of inflows (~$78m on the latest day) and cumulative inflows near $12bn; open interest in ETH futures rose while futures volume dipped. Market optimism is partly driven by Fed officials’ comments suggesting a shift toward easing and futures pricing that implies a December rate cut. On the regulatory front, Australia introduced the Corporations Amendment (Digital Assets Framework) Bill 2025, requiring crypto platforms to obtain AFSL licences and closing client-asset loopholes. Bolivia announced plans to integrate crypto and stablecoins into its financial system, allowing banks to custody crypto and use digital assets in deposits and credit products to combat local inflation. Price-specific short-term notes: BTC showed volatile swings between roughly $80k–$95k over recent sessions but is trading near $91k; ETH climbed from lows under $2,900 to just over $3,000; SOL, JUP and APT remain under pressure but registered short-term recoveries. Implication for traders: rising ETF inflows and rate-cut expectations are supportive, but volumes are muted (holiday week) and price action remains volatile — manage risk around key support/resistance and watch macro cues and institutional flows.
Bullish
Overall the news reads bullish for crypto market sentiment. Key drivers: 1) Macro — Fed official comments and futures pricing implying a possible December rate cut raise risk appetite, which historically supports risk-on assets including crypto. 2) Institutional demand — sustained spot ETH ETF inflows (four consecutive days, meaningful cumulative inflows) and rising futures open interest point to fresh buying rather than profit-taking. 3) Positive price action — BTC and ETH reclaimed psychological levels ($90k and $3k), which can trigger short-covering and momentum buying. 4) Regulatory clarity — Australia’s bill to license exchanges/custodians reduces legal uncertainty for institutional entrants; Bolivia’s move to integrate crypto expands use cases. Caveats that temper the bullish view: holiday-thinned volumes, recent high intraday volatility (BTC ranged $80k–$95k), and ongoing downside risk if macro data or Fed rhetoric changes. Short-term impact: likely continued volatility with upward bias driven by ETF flows and rate-cut expectations; traders should watch volume confirmation, ETF net flows, and Fed communications. Long-term impact: clearer regulatory frameworks (Australia) and broader adoption (Bolivia) are structurally positive, potentially increasing institutional participation and utility, supporting higher valuations over time.