This week, Bitcoin’s remarkable rally to $120,000 has ignited a broader surge across major cryptocurrencies, with significant high single-digit percentage gains observed in ether (ETH), Solana’s SOL, XRP, and dogecoin (DOGE). This price action, however, signifies more than mere momentum; traders are increasingly asserting that the market structure is evolving, largely influenced by institutional participation.
Seamus Rocca, CEO of Xapo Bank, emphasized that this is not a frenzied boom devoid of substance. “This isn’t a frenzied boom with no foundation. It’s a measured ascent, backed up by large institutional players with the long-term in mind,” he stated. He pointed out that tight monetary policies and ongoing geopolitical uncertainties are reinforcing Bitcoin’s emerging role as a macro hedge. Rocca added, “The momentum we’ve seen over the last 48 hours is clear. Bitcoin isn’t just growing in value, but also as a genuine asset class that is rivalling traditional finance.”
Ethereum, which has gained over 17% this week and briefly crossed the $3,000 mark, is among the primary beneficiaries of this bullish trend. The analytics team at Bitcoin yield protocol TeraHash noted, “In Q2, corporate treasury purchases of BTC outpaced inflows into spot ETFs,” indicating a strategic positioning in the market. Additionally, major custodians like Anchorage and Fidelity are expanding their institutional services, while over-the-counter (OTC) desks are streamlining their operations and tightening spreads.
Solana, currently trading around $163, has seen a gain of over 11% this week, driven by resurgent demand in both retail and memecoin ecosystems. The blockchain continues to demonstrate its role as a high-beta proxy for risk-on sentiment. XRP, on the other hand, experienced a 25% jump, buoyed by both a technical breakout and increasing speculation regarding potential regulatory resolutions.
TeraHash further noted, “Price action may grab the spotlight, but the real breakthrough this summer is structural.” The strength of the altcoin market is broad-based, with dogecoin surging 23% in the last week, fueled by heightened retail participation on platforms like Robinhood and Binance. XRP trading volumes have surged on Korean exchanges, while other cryptocurrencies like Cardano, TRX, and AVAX also remain firmly in the green.
However, not all market analysts share an overwhelmingly bullish outlook. Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, pointed out, “Strong bitcoin rallies are often followed by significant movements in altcoins with a slight delay — and a potential comeback of meme coins can’t be ruled out either.”
Despite briefly touching the $120,000 milestone, some experts caution against assuming a straightforward upward trajectory. Ruslan Lienkha, Chief of Markets at YouHodler, expressed a note of caution in an email statement: “Despite briefly touching this key milestone, BTC remains below a major resistance zone. A decisive breakout and sustained move above this level could trigger a sharp upward rally, potentially targeting the $130,000 range.”
