Bitcoin held above $118,500 and Ethereum outperformed on strong ETF inflows and institutional interest. Market sentiment remained cautiously bullish despite Fed-induced volatility. Regulatory updates offered partial clarity, while mixed altcoin performance reflected cautious optimism. Traders are watching macroeconomic signals, including geopolitical risks and U.S. tariff developments.
The cryptocurrency market showed resilience on Thursday with Bitcoin (BTC) stabilising above the $118,500 mark and Ethereum (ETH) gaining ground, bolstered by renewed institutional interest and strong ETF inflows.
As of 12:14 pm IST, Bitcoin was trading at $118,565, up 0.26%, while Ethereum rose 1.11% to $3,868, according to data from CoinMarketCap. The global crypto market capitalisation climbed 0.28% to reach $3.89 trillion.
Ethereum outperformed Bitcoin, supported by a surge in spot ETF inflows — jumping to $219 million, even as Bitcoin ETF inflows halved from nearly $157 million to just $80 million. This shift in capital suggests growing institutional preference for ETH, further strengthened by developments such as ETH Strategy’s $46.5 million fundraise and BTCS Inc.’s $2 billion Ethereum treasury expansion.
“Ethereum is strengthening above $3,820, backed by institutional moves,” said Riya Sehgal, Research Analyst at Delta Exchange. “The market appears to be in a consolidation phase, with traders cautiously optimistic about Ethereum’s upside.”
The broader market was reacting to the Federal Reserve’s decision to hold interest rates steady at 4.25%-4.50% for the fifth consecutive time. Although this was largely expected, markets saw volatility spike immediately after the announcement, leading to nearly $200 million in leveraged liquidations as Bitcoin briefly dipped below $116,000 before recovering.
“Bitcoin continues to show impressive strength above $118,000, despite macro uncertainty,” said Shivam Thakral, CEO of BuyUcoin. “While the Fed’s stance remains hawkish, the crypto market seems better prepared to absorb economic shocks.”
Technical indicators suggest Bitcoin remains range-bound, with resistance near $119,000-$120,000 and support at $116,000, according to CoinSwitch Markets Desk. Momentum signals are mixed, pointing to further sideways movement unless a breakout occurs.
Alongside the Fed decision, the White House released a 163-page crypto strategy report, outlining policy proposals under the GENIUS and Clarity Acts, pushing for CFTC oversight of non-security tokens, and discouraging a U.S. CBDC. However, details on the Strategic Bitcoin Reserve remained unclear.
“The macro backdrop, regulatory clarity, and growing adoption continue to favor long-term upside,” noted Sathvik Vishwanath, Co-Founder and CEO of Unocoin. “A breakout above $120,000 could push Bitcoin toward $125,000-$130,000, while a drop below $111,000 could trigger deeper corrections.”
The altcoin space was divided, with XRP, Sui, Stellar, Chainlink, Hedera, Litecoin, and Toncoin trading up between 0.2% and 4.5%. On the flip side, BNB, Solana, Dogecoin, Tron, Cardano, and Avalanche witnessed declines.
While sentiment remains cautiously bullish across the board, traders are keeping a close eye on macro developments — including rising geopolitical tensions and potential disruptions from U.S. tariff policies under former President Trump.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
