### Cryptocurrency Market Update: A Boost from Institutional Demand
The cryptocurrency market has shown a promising uptick this Wednesday, propelled by a blend of renewed institutional demand, positive technical indicators, and an atmosphere of cautious optimism surrounding upcoming U.S. policy announcements. Bitcoin, the flagship cryptocurrency, held steady near the significant $109,000 mark, while Ethereum surged notably, continuing its ascent amid sustained inflows into spot Exchange-Traded Funds (ETFs) and strategic accumulation by corporate treasuries.
As of 11:50 AM IST, Bitcoin was trading at approximately $108,722, marking a modest increase of 0.5%. Meanwhile, Ethereum’s value climbed 3% to reach $2,627. The global crypto market capitalization showcased a healthy rise, up 1.04% to $3.37 trillion — indicating robust momentum in the sector.
**Institutional Interest in Ethereum**
“Ethereum is gaining traction thanks to corporate treasuries like SharpLink and BitMine, who have amassed nearly 388,000 ETH,” noted Edul Patel, CEO and co-founder of Mudrex. Recent data highlights that Ethereum spot ETFs have experienced an uninterrupted positive flow for eight consecutive weeks, cumulatively adding over 61,000 ETH. This influx is a testament to strong institutional demand, leading analysts like Patel to speculate that if the upward trend persists, ETH could potentially break through the resistance level at $2,643, eyeing a rise towards $2,800.
**Bitcoin’s Resilience and Market Sentiment**
Bitcoin’s performance has remained resilient, hovering above the $108,000 level, which has been encouraging for bullish market sentiment. “Traders are increasingly hopeful of a breakout above $110,000,” commented Avinash Shekhar, Co-founder and CEO of Pi42. He noted that on-chain analytics suggest that the $100,000 mark may have acted as a local bottom, signifying strong support. Notably, there have been net inflows exceeding $217 million into both Bitcoin and Ethereum ETFs since the beginning of the week.
**The Macro Economic Context**
Adding another layer of complexity is the macroeconomic backdrop. CoinSwitch’s markets desk noted the U.S. Dollar Index has dipped 10.1% year-to-date, finding itself at its most oversold level in over two decades. They pointed out that speculative short positions on the dollar are at their lowest since 2021, suggesting that if this weakness persists, Bitcoin and other cryptocurrencies could experience a shift in capital from fiat currencies and treasury holdings.
Compounding these dynamics is the uncertainty brought about by geopolitical developments, such as U.S. President Donald Trump’s announcement of new reciprocal tariffs, including a 25% levy on Japan effective August 1. These market fluctuations could lead to increased interest in alternative assets, including cryptocurrencies.
**A New Era in Decentralized Communication**
Meanwhile, tech entrepreneur Jack Dorsey recently introduced Bitchat, a decentralized peer-to-peer messaging protocol inspired by Bitcoin’s architecture. This protocol is designed to enable encrypted offline communication, potentially facilitating BTC transfers and further integrating cryptocurrency into daily communication methods.
**Positive Momentum in Altcoins**
Technical indicators show that while Bitcoin has been trading within a range, intraday fluctuations have stayed between $107,500 and $109,200. Vikram Subburaj, CEO of Giottus, mentioned that with the 20-day Exponential Moving Average (EMA) on the rise and the Relative Strength Index (RSI) in a favorable range, the technical landscape looks promising for a breakout above $110,500 — the last considerable barrier before revisiting all-time highs.
In addition, various altcoins such as XRP, Cardano, and Dogecoin each saw an uptick of around 3%. Solana gained 2.2%, while Stellar led the rally with an impressive 7% increase. Other notable movers included Chainlink, which observed a 6% rise, and Hyperliquid, which increased by 4%.
**Looking Ahead: Institutional Strategies and U.S. Policy**
Looking toward the future, all eyes are set on the U.S. Digital Asset Task Force, which is anticipated to unveil a strategic policy on Bitcoin reserves later this month. Analysts believe that the confirmation of this policy could serve as a pivotal moment that will greatly influence institutional strategies and overall market sentiment.
*Disclaimer: Recommendations, suggestions, views, and opinions provided by experts are their own and do not reflect the views of The Economic Times.*
