$BTC $SOL $XRP The cryptocurrency market experienced a 1.14% increase over 24 hours, maintaining monthly gains of 26%. Key drivers behind this performance include increasing institutional demand, momentum from the Ethereum network upgrade, and rising correlation between cryptocurrencies and stocks during a bullish wave in the Nasdaq index.
Institutional demand – U.S. Bitcoin ETFs added assets worth $8 billion over 30 days (+15%).
Excitement about the zkEVM upgrade for Ethereum – the roadmap for the Layer 1 upgrade drove a 25% weekly increase in ETH price.
Macroeconomic support – a correlation of 0.90 with the S&P 500 as expectations of interest rate cuts by the Federal Reserve increase.
Detailed analysis
1. Institutional accumulation (Positive Impact)
Overview: Bitcoin Spot ETFs in the United States saw assets under management worth $151 billion (+15% month-on-month), while inflows to Ethereum funds reached $15.7 billion. This follows the Murano Group's shift to a $1 billion investment in Bitcoin, and VivoPower's use of a $100 million XRP treasury on the Flare network for yields.
What does that mean? Traditional capital is gradually shifting to cryptocurrencies through regulated investment tools, with a Bitwise report indicating that 47% of financial advisor clients now allocate part of their assets to digital assets.
What to watch: Decisions by the U.S. Securities and Exchange Commission (SEC) regarding the establishment of in-kind ETF trading funds – approvals could open the door to over $30 billion in unused capital.
2. Momentum of Ethereum technology (Positive Impact)
Overview: Ethereum's zkEVM Layer 1 upgrade (roadmap) aims to achieve block confirmations within 10 seconds by 2026, contributing to a 21% weekly rise in ETH price. The network recorded 19 million daily transactions (a new record) with a total value locked (TVL) in decentralized finance (DeFi) of $170 million.
What does that mean? Developers value the shift to a 'zk-first' architecture that can reduce gas costs by up to 80%, attracting more real-world institutional assets (RWAs).
3. Compatibility with macro market trends (Mixed Impact)
Overview: Cryptocurrencies showed a 0.90 correlation with the S&P 500 over 24 hours, following comments from Federal Reserve member Waller suggesting interest rate cuts in July. Gold saw a 0.8% rise, and technology stocks increased in parallel.
What does that mean? Despite the boost in short-term liquidity, the high correlation with stocks increases systemic risks if economic sentiment changes.
Summary
Today's gains reflect the convergence of institutional adoption factors, the Ethereum expansion narrative, and temporary economic optimism. However, the relative strength index (RSI) at 93.5 on the total market cap indicates an overbought condition – a pullback to $3.8 trillion (38.2% Fibonacci level) may provide healthier entry points.
Key question: Will Ethereum be able to maintain developer momentum after the launch of zkEVM, or will profit-taking from its 25% weekly rise lead to a shift in altcoins? It is advised to continuously and hourly monitor FLR liquidations and ETF fund flow data. #TrumpBitcoinEmpire #NFTMarketWatch #CryptoMarket4T #BinanceHODLerC #AltcoinBreakout
