Why is Crypto Market Going Up Today?

The global crypto market cap rose to $4.01 trillion in the past 24 hours, as Bitcoin (BTC) traded at $115,122, up 0.73%, while Ethereum (ETH) gained 2.28% to $4,502, supported by strong weekly gains. Among top altcoins, XRP held at $3.03, while Solana (SOL) surged nearly 5% in 24 hours and 15% over the week. Dogecoin (DOGE) extended its run, adding 3% to $0.26, bringing weekly gains to more than 21%.

Other top altcoins also posted steady gains, with BNB trading above $900, TRON (TRX) at $0.34, and Cardano (ADA) near $0.89. The rally comes as traders eye upcoming U.S. inflation data, with improving risk appetite pushing more flows into altcoins.

Bitcoin Nears $116K but Signals Mixed

Bitcoin is trading close to $116,000, showing strong price action, but analysts issue a warning. Momentum indicators hint bears are losing control, though some see the risk of a short-term trap before the next leg higher. While the broader trend remains bullish, there might be possible volatility in September.

Global Liquidity on the Rise

The driver behind recent gains is global liquidity, which is recovering and moving toward new highs. Liquidity has rotated from gold to equities and now into crypto, echoing the view that Bitcoin is the “fastest horse” in this cycle. If the trend holds, markets could see a local top in late 2025, followed by a blow-off rally in early 2026.

Fed Policy Adds Fuel

Attention now turns to next week’s U.S. Federal Reserve decision, where a 25-basis-point rate cut is widely expected. Some speculate on a larger 50-point cut, which could trigger strong bullish sentiment. With bond yields easing and unemployment rising, macro conditions favor looser policy, keeping the backdrop supportive for Bitcoin and other risk assets.