Crypto enthusiasts have been buzzing since Tuesday after Bitcoin found steady ground just shy of $120,000, while Ether surged towards the $4,700 mark. The uptick comes amid a swirl of political commentary and growing speculation over federal rate cuts. On top of that, an unexpected nod from former President Donald Trump about integrating crypto into U.S. 401(k) retirement plans has added more fuel to the fire, as explored in Trump’s 401(k) Crypto Move Could Send Billions Into Bitcoin and Ethereum: Best Crypto to Buy?.
Political Winds and Market Shifts
This week, markets have been a cauldron of activity, driven in part by fresh comments from Treasury Secretary Scott Bessent. He suggested that the Federal Reserve should consider a 50 basis point rate cut at its September meeting. The anticipation of such a dovish move has risk assets, including cryptocurrencies, riding a wave of optimism. Ether, in particular, seems to be thriving, notching up a nearly 30% gain over the past week. This surge has historically been a precursor to increased activity in altcoins and microcap tokens, hinting at a potential market frenzy.
The ETF inflows tell a compelling story too. Ether-linked ETFs saw a whopping $520 million in inflows on Tuesday alone. If this pace continues, the weekly total could exceed $2 billion for the first time. Augustine Fan, head of insights at SignalPlus, remarked, “Ethereum has been the standout, with mainstream equity analysts now joining the FOMO trade.” Indeed, the excitement around Ether is palpable, with short-dated implied volatility jumping significantly, indicating that traders are bracing for more dramatic price swings.
Trump’s Comments Fuel Speculation
Enter Donald Trump, whose recent directive to regulators to explore adding crypto to 401(k) plans electrified traders. This move, detailed in Trump Set to Greenlight Crypto in 401(k)s; Bitcoin Rallies on Retirement Reform Push, is still in the exploratory phase, but the prospect of retirement accounts directly exposing themselves to crypto could signify a seismic shift in demand. “Ethereum’s breakout past $4,600 reflects growing confidence in its institutional adoption,” noted Nick Ruck, director at LVRG Research. Indeed, the market seems to resonate with this sentiment, as Bitcoin clings to the $119,000 range, showcasing its resilient demand.
Meanwhile, Alex Kuptsikevich from FxPro observed an intriguing market dynamic. “Bitcoin is testing historical highs above $122,000 with the next major target at $135,000-$138,000. Ethereum is now in striking distance of its all-time high above $4,800,” he pointed out. Interestingly, altcoins, rather than Bitcoin, appear to be the primary drivers of the current rally, flipping the usual script.
Background and Broader Trends
This isn’t the first time macroeconomic factors have influenced cryptocurrency markets. Over the years, the correlation between Fed policies and crypto valuations has been debated extensively. This latest rally, however, underscores an ongoing narrative: as traditional financial systems become more intertwined with digital assets, crypto markets are increasingly sensitive to macroeconomic cues.
Historically, Bitcoin has been the bellwether for crypto market trends. Yet, as Ether gains momentum, it’s clear that its growing allure—partly due to institutional adoption and innovative scaling upgrades—is shifting the spotlight. The narrative isn’t lost on the market; traders and analysts alike are keenly watching these developments.
Looking Ahead
As we look to the future, questions loom large. Will the Fed indeed opt for a rate cut in September? If so, could this further catalyze the crypto rally? And what about the broader implications of integrating crypto into retirement plans? Skeptics might argue that the market is running on fumes, but the sheer volume of ETF inflows suggests otherwise.
In any case, the crypto world is holding its breath. With Bitcoin eyeing fresh highs and Ether on the cusp of breaking past previous records, the stakes have never been higher. As always, volatility is the name of the game. But for now, the bulls seem to be in control—at least until the next twist in this ever-evolving narrative.
Source
This article is based on: Bitcoin Holds Near $120K, Ether Rallies Towards $4.7K on Trump’s Comment, Fed Rate Cut Bets
Further Reading
Deepen your understanding with these related articles:
- Trump 401K Order Could Send ‘Billions’ Into Bitcoin, Ethereum: Analysts
- Crypto Inflows Surge to $578 Million After Trump’s 401(k) Shock Put Bitcoin on Ethereum’s Heels
- Bitcoin Nears $117,000 Ahead of Trump’s Plan To Open 401(k)s to Crypto
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
