Bitcoin (BTC) Surges Past $108K on Institutional News as Altcoins Show Weakness

The cryptocurrency market presented a mixed but ultimately bullish picture this week, with Bitcoin (BTC) demonstrating significant strength while major altcoins began to show signs of profit-taking. Bitcoin surged past the $108,000 mark, closing in on its all-time high, driven by a wave of positive institutional developments. As of recent trading, the BTC/USDT pair was hovering around $108,452, having reached a 24-hour high of $109,656. This rally reflects a renewed risk appetite in the broader financial markets, with the S&P 500 and Nasdaq also posting gains as geopolitical anxieties subsided. The positive sentiment was fueled by news that JPMorgan filed a trademark for digital asset services and that asset manager Purpose is launching a spot XRP exchange-traded fund (ETF) in Canada. This institutional momentum is absorbing supply and creating a constructive backdrop for the leading digital asset.

In contrast to Bitcoin's ascent, several major altcoins experienced a cooldown. Ether (ETH), which had previously outperformed BTC, saw its rally pause after briefly touching $2,800. The ETH/USDT pair traded around $2,562, showing a modest gain but facing resistance. Other large-cap tokens displayed more pronounced weakness. Dogecoin (DOGE) fell nearly 4%, while XRP, despite the positive ETF news, saw some profit-taking alongside BNB, Solana (SOL), and Cardano (ADA), which posted losses of up to 3%. For instance, ADA/USDT was trading flat around $0.5826, while SOL/USDT managed a small gain to $152.28, indicating that traders were cautiously locking in profits as these assets approached local resistance levels. According to Nansen research analyst Nicolai Søndergaard, despite these brief altcoin bursts, Bitcoin remains the primary market driver. He explained that altcoin strength is often triggered by BTC's performance, stating, “BTC breaks an ATH? The market likes that.” He cautioned that while some profits trickle down, most altcoins have not sustained prolonged runs, keeping the market's focus firmly on Bitcoin.

Macroeconomic Tailwinds and Shifting Sentiment

The improving macroeconomic landscape has provided a significant tailwind for risk assets, including cryptocurrencies. Jeffrey Ding, Chief Analyst at HashKey Group, pointed to progress in U.S.-China trade relations and softer inflation data as encouraging signs that ease market pressures and stabilize the economic outlook. This sentiment was echoed by Augustine Fan, Head of Insights at SignalPlus, who noted a noticeable turnaround in mainstream crypto sentiment. He highlighted the trend of corporate BTC treasury strategies, inspired by MicroStrategy (MSTR), and growing excitement around stablecoins in both traditional finance and on-chain ecosystems. Further supporting this view, Kraken economist Thomas Perfumo described a “virtuous cycle” where the adoption of structural products like spot ETFs is rapidly absorbing supply, especially within a more favorable U.S. regulatory environment. This confluence of institutional adoption and a calmer macro picture is bolstering the case for digital assets as a macro hedge.

Technical Levels and Federal Reserve Outlook

From a technical standpoint, the market may have already established a local bottom. Analysts at Bitfinex observed that the Fear and Greed Index dipped into “Fear” territory last week, coupled with aggressive selling indicated by Bitcoin’s Net Taker Volume. They noted that this behavior, along with a spike in liquidations, is reminiscent of past capitulation events that often precede a recovery. A critical support zone for Bitcoin is now identified between $102,000 and $103,000. If BTC can maintain its position above this level, it would suggest that selling pressure is being absorbed, potentially setting the stage for the next leg up. Looking ahead, all eyes are on the Federal Open Market Committee (FOMC) meeting. While the market widely expects the Fed to hold interest rates steady, according to the CME FedWatch tool, traders will be dissecting Fed Chair Jerome Powell's press conference for clues on future policy. As analysts from Swissblock noted, Powell's tone, rather than the rate decision itself, will likely be the primary driver of volatility across all markets, including crypto.