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    • 2 minutes read

    Why Crypto Market is Up Today? Ethereum Nears $4,700 on Massive ETF Inflows

    Story Highlights
    • Ethereum ETF Inflows Drive Rally – $520M poured into ETH ETFs in a single day, pushing prices near $4,700 and weekly flows toward $2B.

    • Trump’s 401(k) Crypto Plan Sparks Optimism – Proposal to explore crypto in retirement accounts boosts long-term demand outlook.

    • Rate Cut Bets Add Fuel – Expectations of a 50-bps Fed cut in September and record-high ETH options interest signal more upside ahead.

    The crypto market is riding a wave of bullish sentiment this week, driven by a cocktail of political signals, expectations of Federal Reserve rate cuts, and a flood of institutional money into Ethereum ETFs. Ether has been the star performer, gaining nearly 30% in a week and pushing close to $4,700, levels that have historically triggered a rotation into altcoins and microcap tokens.

    ETH options open interest has also jumped to $13.75B, nearing its $14.6B record, signaling traders are gearing up for a major move. The combination of high OI and strong momentum points to heightened volatility ahead.

    Why is the Crypto Market Surging Today?

    Fueling the optimism, U.S. President Donald Trump has ordered regulators to explore the inclusion of crypto in 401(k) retirement plans alongside private equity. While still at an exploratory stage, such a move could open the floodgates for structural demand from retirement accounts. This comes as ETFs tied to ETH saw $520 million in inflows on Tuesday alone, with weekly flows on track to hit a record $2 billion.

    Bitcoin Steady, Altcoins Follow ETH’s Lead

    Bitcoin remains rock solid, holding just under $120,000, while altcoins have rallied in ETH’s slipstream. Solana surged 12% to $198, BNB climbed 5% to $837, and XRP gained 4% to $3.25. Dogecoin and Cardano both jumped over 8%, continuing their tendency to track ETH price action. Analysts note that, unusually, altcoin momentum is pulling Bitcoin higher this time, rather than the other way around.

    Traders Eye ETH’s Short-Term Potential

    Market analysts are pointing to Ethereum’s short-dated implied volatility, a measure of expected near-term price swings, which has risen sharply compared to Bitcoin’s near-record low volatility. This signals traders are bracing for more short-term action in ETH and potentially bigger upside moves. 

    Meanwhile, Michael van de Poppe has expressed excitement over Ethereum’s latest surge, pointing out that the price has now reached $4,000 (around $4,650), a significant milestone that underscores just how fast the crypto market is moving. 

    His comment reflects the current bullish momentum in ETH, driven by a mix of political support, potential U.S. Fed rate cuts, and massive ETF inflows. 

    Rate Cuts Could Supercharge the Rally

    Treasury Secretary Scott Bessent’s suggestion of a 50 basis point Fed rate cut in September has only added to the bullish mood. If the Fed follows through, easing macro pressures could propel crypto prices higher, with BTC potentially testing $135,000–$138,000 and ETH closing in on its all-time high above $4,800.

    The market mood is clear, Ethereum is leading the charge, and if institutional inflows and political momentum keep building, the rest of the crypto pack may not be far behind.

    Never Miss a Beat in the Crypto World!

    Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

    FAQs

    Why is the crypto market up today?

    The crypto surge is driven by Trump’s 401(k) crypto proposal, $520M ETH ETF inflows in one day, and expectations of Fed rate cuts – with ETH leading a 30% weekly gain.

    How are altcoins performing compared to Bitcoin?

    SOL (+12%), DOGE (+8%) and ADA (+8%) outpace BTC’s steady $120K hold – an unusual market dynamic where altcoins are leading Bitcoin’s movement.

    Could Fed rate cuts boost crypto further?

    A potential 50bps September rate cut could propel BTC to $135K-$138K and help ETH challenge its $4,800 ATH by easing macroeconomic pressures.

    What political factors are affecting crypto prices?

    Trump’s 401(k) crypto exploration order and Treasury’s dovish rate signals are creating institutional optimism, with ETH ETFs on track for $2B weekly inflows.

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