Bitcoin News Today: Bitcoin Approaches $120K as Fed Rate Cut Hopes and ETF Inflows Fuel Altcoin Gains

Cryptocurrency prices have surged in late July and early August 2025, driven by heightened optimism over a potential Federal Reserve rate cut and substantial inflows into crypto ETFs. The market’s sentiment has shifted sharply toward risk-on behavior, as reflected in the Crypto Fear and Greed Index, which entered the “greed” zone with a reading of 63. This aligns with broader market optimism, as the CNN Money Fear and Greed Index also climbed to 66, reinforcing the bullish momentum across equities and digital assets [1].

Bitcoin briefly surpassed $122,000 before consolidating near $118,000, while Ethereum climbed above $4,700, approaching its historical high. Altcoins have also seen significant gains, with Solana (SOL) rising above $200, Binance Coin (BNB) and Ripple (XRP) gaining traction, and OKB surging by over 100% in a single day. Dogecoin (DOGE) added 12% in a week, buoyed by meme coin speculation [2].

Institutional demand has been a major catalyst for the rally. Ethereum spot ETFs recorded over $1.7 billion in inflows during the week, pushing cumulative Bitcoin ETF assets beyond $54 billion. Derivatives-based ETFs, including those linked to Solana and XRP, also reported growing inflows. James Toledano of Unity Wallet noted that Ethereum is within 4% of its peak and could potentially surpass its all-time high if institutional demand continues [1].

Ethereum’s upward trajectory is reshaping broader market expectations, particularly for altcoins. OKB has benefited from a strategic token burn initiative, permanently eliminating 65 million tokens and fixing the supply at 21 million. This move has driven its price to over $140, with the next key level at $200 if it maintains above $72. AERO has seen steady gains, with a 13% rise pushing it to nearly $1.40. Sustained closes above $1.30 suggest potential for further growth toward $1.60 and beyond [1].

Layer 2 altcoin ARB has also seen a rally following Ethereum’s surge, with $0.50 seen as a critical target. If it regains $0.68 by the end of the week, it could push toward $0.82. RAY Coin has retested the $3.85 resistance level after 93 days, with momentum favoring a potential new high between $4.33 and $5.30. Both ARB and RAY Coin remain closely tied to the performance of Bitcoin and Ethereum [1].

Despite the positive momentum, analysts urge caution. Derivatives data suggest that traders are not yet in a euphoric state, and macroeconomic risks remain. Bitcoin is forming a potential double-top near $123,000, with a neckline at $112,000. A confirmed reversal could trigger a broader correction, as altcoins often follow Bitcoin’s lead [1].

Notable altcoin performances include a 133% surge in CYBER (CYBER) following its listing on Upbit, with the coin’s market cap exceeding $80 million. Ethereum and Solana continue to benefit from growing institutional interest, while Dogecoin’s rally is driven by retail enthusiasm [2].

The overall market momentum is reinforced by rising public interest, as evidenced by increased Google searches for altcoins. However, investors are advised to remain vigilant against macroeconomic uncertainties and technical risks that could disrupt the current upward trend [1].

Source:

[1] Why are Bitcoin and altcoins like Solana, BNB, XRP going up today 13-8 (https://crypto.news/why-are-bitcoin-and-altcoins-like-solana-bnb-xrp-going-up-today-13-8/)

[2] Double- and Triple-Digit Gains for These Altcoins as Bitcoin flirts with 120k (https://cryptopotato.com/double-and-triple-digit-gains-for-these-altcoins-as-bitcoin-flirts-with-120k-market-watch/)