Cryptocurrency markets are experiencing a significant upswing, with Ether and Dogecoin at the forefront of this rally. This surge, observed on Thursday, stems from a confluence of supportive risk sentiment and the political momentum surrounding digital asset legislation. As Bitcoin hovers near its record high of $112,000, Ether has surged past $2,780—marking a nearly 7% increase over 24 hours. Dogecoin, not to be left behind, jumped 6%, with other notable gains seen in Solana and XRP. The CoinDesk 20 index, which tracks the largest tokens by market capitalization, excluding stablecoins, rose over 2%.
Market Dynamics and Insights
Onchain analysis firm Santiment offered intriguing insights, noting that retail trader-based wallets were conspicuously absent from the current rally. “History has shown that this is a prime sign of a potential breakout,” the firm remarked on X, formerly known as Twitter. “Crypto markets typically move the opposite direction of the crowd’s expectations. When retail shows FUD—fear, uncertainty, and doubt—these are usually prime spots for smart money to move in and accumulate. This time has been no different.” The analysis hints at a market poised for further upward movement, driven by institutional players who are often more prescient in their trading strategies. For more on the recent price movements, see Ethereum, Dogecoin Soar as Bitcoin Hits Highest Price in 3 Weeks.
The backdrop to this cryptocurrency surge includes geopolitical tensions in the traditional financial markets. U.S. equity markets are digesting another round of tariff threats from former President Donald Trump, including a hefty 50% levy on copper imports and increased duties on Brazilian goods—moves that sent Brazilian stocks tumbling. Despite the geopolitical noise, U.S. equity-index futures dipped a mere 0.1%, while global tech stocks, including Nvidia, continued their upward trajectory.
Political Developments and Market Sentiment
The recent rally in crypto prices is also buoyed by upcoming political developments in the U.S. Augustine Fan, Head of Insights at SignalPlus, commented, “Crypto prices surged to new all-time highs on the back of a supportive risk and equity backdrop.” Fan noted Bitcoin’s climb past $112,000 following the announcement from the U.S. House Committee of a ‘Crypto Week’ starting on July 16, with a hearing titled “Making America the Crypto Capital of the World.” He added, “Traders are expecting concrete signals after months of posturing.” This aligns with trends observed in Dogecoin, Solana, Ethereum Drive Crypto Markets Higher as Bitcoin Stays Flat.
This political momentum could pave the way for regulatory clarity. Since January, the market has been operating under a six-month soft target for regulatory recommendations set by President Trump. Next week’s hearing could provide the much-needed clarity or at least kickstart momentum towards a federal framework that has been long-awaited by market participants.
Looking Ahead
As the crypto market rallies, questions linger about the sustainability of this momentum. The absence of retail traders, as noted by Santiment, raises questions about the broader participation in this upswing. Will retail investors jump in, or will they remain on the sidelines, allowing institutional investors to dictate the pace?
Furthermore, as geopolitical tensions simmer and the U.S. wrestling with its position on digital assets, the market waits with bated breath for the outcomes of the upcoming ‘Crypto Week.’ The potential for regulatory clarity could either bolster or temper the current optimism.
In the interim, market participants remain cautiously optimistic, watching for any cues from both political developments and the traditional financial markets. The intersection of these factors could determine whether this rally has the legs to continue—or if it’s merely a prelude to another chapter in the volatile world of cryptocurrency.
Source
This article is based on: Ether, Dogecoin Lead Crypto Gains as Firms Signal ‘Prime’ Breakout Chance for Market
Further Reading
Deepen your understanding with these related articles:
- Dogecoin Pops 6% to Lead Majors Gains as Bitcoin Nears $110K on Fresh Rate-Cut Optimism
- Solana Skyrockets as Bitcoin and Ethereum Grind Higher: Where Do Prices Go Next?
- Crypto Traders Shrug Off Dormant Bitcoin Whale Moves, With Profit-Taking on XRP, DOGE, SOL
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.
