Crypto Market Surges 1.3% to $3.73 Trillion on Institutional Activity

The crypto market has experienced a significant surge, marking its third consecutive day of gains. The market capitalization has increased by 1.3% to $3.73 trillion, up from $3.45 trillion the previous day. This upward trend is evident as 99 out of the top 100 coins by market capitalization have appreciated over the past 24 hours.

Bitcoin (BTC) has broken its previous all-time high, surging by 5.6% to trade at $117,586. Ethereum (ETH) is also performing strongly, with a 6.5% increase, currently trading at $2,986. Dogecoin (DOGE) leads the top 10 coins with an 8.9% increase, now valued at $0.1965. Monero (XMR) is the only coin in the red, falling 0.7% to $325. Several other coins have recorded double-digit rises, with Ethena (ENA) up 20.7% to $0.347 and Sei (SEI) up 20.6% to $0.3183.

Analysts attribute the price surge to a combination of macroeconomic optimism and significant institutional activity. Gadi Chait, Head of Investment at Xapo Bank, notes that Bitcoin has shown price stability in six-figure territory for 62 days, indicating its maturation as an asset. He also highlights robust institutional demand and macroeconomic tailwinds as drivers of the recent surge. James Toledano, Chief Operating Officer at Unity Wallet, adds that the price surge is driven by a confluence of macroeconomic optimism and significant institutional activity, including ETF inflows and sovereign and corporate balance sheet allocations. He suggests that a potential reckoning in the traditional economy could benefit digital assets as capital seeks new homes.

Ruslan Lienkha, chief of markets at YouHodler, predicts that a decisive breakout and sustained move above $112,000 for BTC could trigger a sharp upward rally, potentially targeting the $130,000 range. He attributes this potential to a supportive macro backdrop and tightening BTC supply dynamics. However, he also acknowledges near-term risks, including evolving political and economic backdrops, particularly trade tensions. Despite these risks, the medium- and long-term outlook for Bitcoin remains overwhelmingly positive, with deepening institutional adoption and accelerating integration into traditional financial systems.

The crypto market sentiment has also surged, entering greed territory with the Fear and Greed Index jumping from 58 to 67. This signals potential overconfidence and inflated prices, cautioning investors about the risk of FOMO. On 10 July, US BTC spot ETFs recorded inflows of $1.18 billion, the second-highest amount ever. BlackRock, Grayscale, and Ark & 21Shares were among the top beneficiaries. US ETH ETFs also saw significant inflows of $383.1 million, the highest in six months. Institutions and corporations continue to enter the crypto space, with NRW.BANK, a German state-owned development bank, issuing a €100 million blockchain-based bond on the Polygon network. Leading financial institutions like Deutsche Bank, DZ BANK, and DekaBank participated in the offering.

Analysts generally agree that the rally is sustainable, with the market having more room to grow this year. However, typical pullbacks and larger corrections are possible and even likely. The crypto market's surge is driven by a combination of macroeconomic optimism, significant institutional activity, and the potential for capital to seek new homes in digital assets as the traditional economy faces challenges. The medium- and long-term outlook for Bitcoin remains positive, with deepening institutional adoption and accelerating integration into traditional financial systems.