Crypto markets extended gains on Wednesday, propelled by Federal Reserve rate cut expectations and former President Donald Trump's directive to explore including cryptocurrencies in U.S. retirement plans. Treasury Secretary Scott Bessent advocated for a 50-basis-point rate cut at the Fed's September meeting, amplifying bullish sentiment across risk assets.
Ether (ETH) spearheaded the rally with nearly 30% weekly gains, nearing its all-time high of $4,800. Spot ETH ETFs recorded $520 million in inflows on Tuesday, following Monday's record $1.01 billion net inflow, putting weekly flows on track to exceed $2 billion for the first time. Analysts attribute ETH's surge to institutional demand and rising short-dated volatility, signaling trader anticipation of near-term upside. "Ethereum has been the standout, with mainstream equity analysts joining the FOMO trade," noted Augustine Fan of SignalPlus.
Bitcoin (BTC) held steady near $120,000 but faced resistance at its $123,218 all-time high. Technical analysts warned of a potential distribution phase that could push BTC toward $95,000 if support at $110,530 breaks. Despite this, FxPro's Alex Kuptsikevich observed altcoins pulling BTC higher—an unusual market dynamic—with a breakout potentially targeting $135,000.
Altcoins showed robust momentum: BNB gained 5% to $837, eyeing resistance at $861; LINK surged past $22.70 toward $27; and UNI tested $12 resistance with $15 as an upside target. ETH's breakout past $4,600 reflects "growing confidence in institutional adoption," according to LVRG Research's Nick Ruck, who added that Fed dovishness could accelerate ETH's outperformance.