Despite a slight dip in overall market cap, investor sentiment remains upbeat as altcoins rally and institutional inflows continue.
Ether (ETH) and dogecoin (DOGE) led the crypto market higher on Wednesday, each notching a 9% gain over the past 24 hours. The surge extended a multi-day rally that has seen both tokens post double-digit gains over the past week, reinforcing a bullish mood in the broader digital asset landscape.
Total crypto market capitalization edged up by 1.7% according to CoinGecko data, even as some traders signaled caution amid mixed macroeconomic signals. Bitcoin (BTC) held steady near $103,700 during Asian trading hours, while Ethereum traded above $2,600 and dogecoin hovered around 24 cents. Other major tokens, including XRP, BNB, ADA, and SOL, recorded gains between 3% and 5%.
Despite the green wave sweeping across most altcoins, underlying macroeconomic factors are beginning to weigh on market momentum. Analysts warn of short-term profit-taking, spurred in part by a strengthening U.S. dollar and renewed global trade tensions.
Alex Kuptsikevich, chief market analyst at FxPro, noted that recent tariff-related news has lent strength to the dollar, which in turn acts as a drag on cryptocurrencies. This could hold true seen with bitcoin’s proximity to the highs but also reinforces the pull for short-term profit taking after rallying in just over a month, Kuptsikevich explained his understandings to CoinDesk.
The broader market now finds itself at a crossroads. Bitcoin, in particular, is once again caught in a narrative tug-of-war between its role as “digital gold” and as a high-risk, high-reward asset. According to a market update from QCP Capital, based in Singapore, this identity conflict continues to blur its directional conviction. As the macro-outlook shifts from protectionist fears to cautious optimism, BTC may remain range-bound in the near term, QCP Capital noted.
Even so, sentiment remains notably strong. The widely-followed Fear & Greed Index has held above 70 for four consecutive days — a “greed” zone typically associated with ongoing bullish behavior and appetite for risk. Kuptsikevich emphasized that bitcoin’s recent unpredictability has kept traders alert. With the positivity remaining, it’s worth paying attention to the price dynamics near $105K.
Institutional activity has also been robust. Data from CoinShares shows $882 million in crypto fund inflows last week, marking the third straight week of strong institutional buying. Bitcoin dominated the flows with $867 million, while ether, despite its strong price performance, saw more modest inflows of just over $1.8 million. Solana, interestingly, registered $3.4 million in outflows even as speculative traders loaded up on $200 call options set to expire in late June.
The market’s mixed signals underscore the delicate balance between risk and reward that currently defines the crypto world with price momentum, macro headwinds, and investor psychology all playing pivotal roles.
