Bitcoin (BTC) has remained steady above $107,000, but the broader crypto market is showing signs of potential profit-taking as key assets begin to experience slight declines. Dogecoin (DOGE) fell nearly 4% to 19 cents, while TRON's TRX dropped 5.5% to 27 cents. Other cryptocurrencies, including XRP, BNB, Solana, and Cardano, also reported losses of up to 3%.
Ether (ETH), which briefly surpassed BTC last week amidst ETF inflows and optimistic derivative activity, is showing signs of slowing after reaching over $2,800. Although the overall sentiment remains largely positive, multiple tokens are now hovering near local resistance levels, prompting cautious traders to realize gains.
Analysts suggest that the broader market remains constructive, with quiet momentum building in crypto as fundamental changes attract capital interest. Market conditions are shifting, driven in part by recent developments in the U.S.-China trade negotiations and a cooling inflation rate, resulting in a more favorable outlook for risk assets. According to Augustine Fan, Head of Insights at SignalPlus, “The mainstream sentiment towards crypto has visibly shifted, especially after Circle’s successful IPO, and companies such as Gemini and Bullish have indicated intentions to list with the SEC.”
Furthermore, treasury plays in BTC are gaining traction, as several companies attempt to emulate the strategy of MicroStrategy, sparked by interest in stablecoins in both traditional finance and on-chain environments.
Jeffrey Ding, Chief Analyst at HashKey Group, remarked that the U.S.-China agreement progress and softer CPI data are encouraging signs for global markets, alleviating inflationary pressures and enhancing economic stability. He added, “We are optimistic that digital assets will continue to grow as macroeconomic influences settle and institutions further integrate into the industry.”
Kraken's economist, Thomas Perfumo, also shares this institutional perspective, stating that the rise in crypto markets reflects their evolving role as a macro hedge amid rising bond yield volatility and growing federal deficits. He notes, “We are witnessing a virtuous cycle: the adoption of structural purchase vehicles like ETFs — particularly within a more favourable U.S. regulatory environment — is absorbing supply much faster than anticipated.”
Ether (ETH), which briefly surpassed BTC last week amidst ETF inflows and optimistic derivative activity, is showing signs of slowing after reaching over $2,800. Although the overall sentiment remains largely positive, multiple tokens are now hovering near local resistance levels, prompting cautious traders to realize gains.
Analysts suggest that the broader market remains constructive, with quiet momentum building in crypto as fundamental changes attract capital interest. Market conditions are shifting, driven in part by recent developments in the U.S.-China trade negotiations and a cooling inflation rate, resulting in a more favorable outlook for risk assets. According to Augustine Fan, Head of Insights at SignalPlus, “The mainstream sentiment towards crypto has visibly shifted, especially after Circle’s successful IPO, and companies such as Gemini and Bullish have indicated intentions to list with the SEC.”
Furthermore, treasury plays in BTC are gaining traction, as several companies attempt to emulate the strategy of MicroStrategy, sparked by interest in stablecoins in both traditional finance and on-chain environments.
Jeffrey Ding, Chief Analyst at HashKey Group, remarked that the U.S.-China agreement progress and softer CPI data are encouraging signs for global markets, alleviating inflationary pressures and enhancing economic stability. He added, “We are optimistic that digital assets will continue to grow as macroeconomic influences settle and institutions further integrate into the industry.”
Kraken's economist, Thomas Perfumo, also shares this institutional perspective, stating that the rise in crypto markets reflects their evolving role as a macro hedge amid rising bond yield volatility and growing federal deficits. He notes, “We are witnessing a virtuous cycle: the adoption of structural purchase vehicles like ETFs — particularly within a more favourable U.S. regulatory environment — is absorbing supply much faster than anticipated.”
