Bitcoin and crypto prices resumed their bull run this week, helped by numerous tailwinds.
Bitcoin (BTC) surged to a record high of $112,000, while the crypto market cap jumped to over $3.5 trillion.
The rally occurred amid ongoing risk-on sentiment in the financial markets, as investors disregarded trade-related risks. One example was the rising Fear and Greed Index, which moved into the extreme greed zone of 75.
Another notable development was the surging NVIDIA stock price, which reached a record high, with its market capitalization surpassing $4 trillion for the first time. Crypto prices often exhibit a close correlation with technology stocks, as both are characterized as high-risk assets.
BTC and altcoins also advanced as demand from Wall Street investors continued rising. For example, spot Bitcoin ETFs crossed the important $50 billion inflow milestone for the first time after adding $218 million in assets on Wednesday.
BlackRock’s IBIT ETF now holds over $77 billion in assets and is bridging the gap with gold’s GLD ETF.
Spot Ethereum ETFs also continued to see inflows, adding over $211 million on Wednesday. This brought total inflows to over $4.72 billion, much higher than at the start of the year. In a note, an analyst told Bloomberg:
“Voracious demand from equity market vehicles such as ETFs and digital-asset Treasuries has underpinned a continuous bid for Bitcoin.”
Crypto prices also advanced after the Federal Reserve released the minutes from its last meeting. These minutes showed that some Fed officials expect Trump’s tariffs to have a limited impact on inflation. As such, analysts are penciling in a 0.25% rate cut at the September meeting. Trump has called for a 300 basis point cut.
Bitcoin price technicals contributed to the crypto rally
As we have written here and here, Bitcoin price has formed several bullish patterns that have contributed to the rally. It formed a cup-and-handle pattern and a bullish flag on the daily chart.
It has now moved above the upper side of the cup and the flag, pointing to an eventual breakout. By measuring the size of the flag and the depth of the cup, one can estimate that Bitcoin price will eventually advance above $140,000 in the next few months. Such a move would then trigger further gains among altcoins like Ethereum and Cardano.
