The cryptocurrency market experienced a significant relief rally on Tuesday, fueled by massive institutional capital inflows and improving global risk sentiment. Bitcoin (BTC) found renewed momentum, trading near the $75,000 mark, while Ethereum (ETH) stabilized above the $2,300 threshold.
Over the past 24 hours, Bitcoin showed a robust gain of 4.92%, and Ethereum climbed 7.92%. The global crypto market capitalization mirrored this strength, rising 4.34% to $2.52 trillion, according to CoinMarketCap data.
Institutional Inflows Propel Crypto Rally
A primary catalyst driving the current rally is the massive capital injection into crypto Exchange Traded Products (ETPs). Analyst Akshat Siddhant of Mudrex noted that the momentum is largely supported by $1.1 billion flowing into crypto ETPs, marking the highest inflow seen since mid-January.This institutional interest has been bolstered by ongoing accumulation efforts. Separately, Strategy added 13,927 bitcoins last week, taking their total holdings to 780,897 BTC, reinforcing the trend of continued institutional buying.
Bitcoin and Ethereum Chart Strong Upswing
Bitcoin's price action reflected a powerful recovery, with the asset reclaiming levels near $74,000 after earlier losses. Riya Sehgal of Delta Exchange observed that BTC reclaimed ground after holding support near $70,500, demonstrating strong short-term momentum.ETH is showing clear signs of life, pushing past key resistance levels. Charish Vatnani, Head of Trade at ZebPay, commented that ETH has shown significant strength, managing to push above the $2,200 level which had acted as a strong resistance for a prolonged period.
Altcoins and Macro Factors Fuel Optimism
The momentum extended beyond the majors, with major altcoins like BNB, XRP, Solana, Tron, Dogecoin, Hyperliquid, and Cardano rallying up to 22.91% in the past week.On the macro front, improvements in global risk sentiment played a crucial role. The recovery was supported by oil prices pulling back below $100, which eased concerns surrounding inflation and broader macroeconomic pressures, according to WazirX market’s desk.
Expert Viewpoints Detail Accumulation Strength
Derivatives data suggests that positioning remains constructive, pointing toward an upside bias. CoinSwitch Markets Desk highlighted a low put/call ratio of 0.41, signaling strong upside expectations among traders.Furthermore, the accumulation by large holders suggests structural support. CoinDCX Research Team noted that Bitcoin whales holding 1,000 to 10,000 BTC now control over 4.25 million BTC, representing 21.3% of the supply after recently adding approximately 27,652 BTC.
Despite the strong upward movement, CoinDCX Research Team advised that market sentiments remain neutral as the fear & greed index currently reads 43. However, the increased number of Ethereum wallets holding at least 100K ETH, which rose from 54 to 57 in the last week, signals growing conviction among holders.
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