Institutional demand and improved liquidity have strengthened crypto markets, but upcoming US economic data could bring volatility.
Crypto market sentiment turns bullish as Bitcoin rally continues
Photo Credit: Unsplash/Traxer
Bitcoin traded near Rs. 76.8 lakh on Tuesday as the cryptocurrency market extended its rally above 76.5 lakh, supported by institutional demand, improved liquidity, and broader participation across major altcoins. Ethereum (ETH) was trading near Rs. 2.4 lakh, while XRP and Solana also remained elevated. According to market participants, strong ETF inflows and easing pressure from US Treasury yields have supported the latest move, although upcoming inflation data and Federal Reserve signals could determine whether the rally can extend further. According to CoinGecko data, Bitcoin traded near $80,700 (roughly Rs. 77.2 lakh), and Ethereum (ETH) traded near $2,500 (roughly Rs. 2.4 lakh).
The world's largest cryptocurrency gained 4.3 percent in the last 24 hours, as per the Gadgets 360 price tracker. Analysts said US spot Bitcoin ETFs reported about $2.05 billion (roughly Rs. 19,622 crore) in net inflows across six sessions through August 24, while Bitcoin has gained more than 26 percent in seven days. The rally has pushed the Fear & Greed Index into “Extreme Greed”, while Bitcoin dominance has risen to nearly 59.8 percent.
Binance Coin (BNB) was priced around $716.4 (roughly Rs. 68,572), while Solana (SOL) traded near $101.7 (roughly Rs. 9,734). XRP hovered around $1.52 (roughly Rs. 145), while Dogecoin (DOGE) was trading close to $0.09 (roughly Rs. 8.6), indicating continued participation across major cryptocurrencies.
Pointing to Bitcoin's latest rally and the risks around the next phase of the move, Prateek Gupta, Head of Business, Mudrex, said, “The focus now shifts to Fed Chair Kevin Warsh's first Jackson Hole keynote, with investors watching for a repeat of 2022, when Jerome Powell's hawkish remarks triggered a sharp risk-asset sell-off. PCE inflation data will also be key: softer inflation could lower yields and weaken the dollar, supporting Bitcoin, while hotter data could reinforce higher-for-longer rate expectations.”
Highlighting the impact of institutional demand and easing Treasury yields, Ashish Singhal, Co-founder of CoinSwitch, said, “Bitcoin's move above $80,000 (roughly Rs. 76.5 lakh) signals a meaningful shift in market sentiment, supported by stronger institutional demand and easing pressure from US Treasury yields. The nearly $1.9 billion (roughly Rs. 18,187 crore) in weekly spot Bitcoin ETF inflows shows traditional investors are returning as macro conditions become more supportive [...] If yields continue to soften, Bitcoin could retain momentum; but after a 38% rebound, some profit-taking and volatility should be expected.”
Assessing Bitcoin's sharp weekly rally and broader market participation, Vikram Subburaj, CEO, Giottus.com, said, “US spot Bitcoin ETFs reported about $2.05 billion (roughly Rs. 19,622 crore) in net inflows across six sessions through August 24, while the US Treasury's decision to double long-end bond buybacks improved liquidity sentiment [...] For customers, a fast rise should not be mistaken for the disappearance of risk. Those considering fresh spot purchases can stagger their entry instead of committing the full amount after a 26 percent weekly rally. Existing investors should review whether the latest gains have made any one asset disproportionately large within their portfolio.”
While the latest gains have broadened participation across several major cryptocurrencies, Bitcoin's sharp weekly rebound also leaves the market vulnerable to profit-taking. The upcoming US PCE inflation data and Federal Reserve signals from Jackson Hole could provide fresh direction, with Bitcoin's ability to hold above $77,000 (roughly Rs. 73.7 lakh) and sustain levels above $80,000 (roughly Rs. 76.5 lakh) likely to determine whether the current momentum can continue.
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