Crypto Market Surges 3% as Dollar Weakens, Bitcoin Reaches $108,812

The crypto market experienced a notable uptick today, with the majority of the top 100 coins by market capitalization appreciating over the past 24 hours. This upward trend is attributed to several factors, including the historically weak level of the Dollar Index (DXY), which tends to benefit risk assets like Bitcoin. As the dollar weakens, investors reassess their portfolio allocations and shift capital toward alternative asset classes, including cryptocurrencies.

Bitcoin (BTC) saw a modest increase of 0.4%, returning to its previous level and currently trading at $108,812. Ethereum (ETH) led the gains among the top 10 coins, appreciating by 3.1% to $2,629. XRP also saw a significant rise of 3% to $2.33. Tron (TRX) was the only coin in the red, but its price remained unchanged at $0.2869. Among the top 100 coins, 95 showed gains, with Cronos (CRO) and SPX6900 (SPX) leading the increases at 16.4% and 12.5%, respectively. Bonk (BONK) and Fartcoin (FARTCOIN) were the biggest losers, falling by 6.3% and 2%, respectively.

The overall market sentiment remains largely unchanged, with the Fear and Greed Index fluctuating between 49 and 55 over the week. The index stands at 52 today, indicating a neutral to slightly greedy sentiment. Investors are closely monitoring developments related to global trade and tariffs, particularly in the US, as these factors could influence market movements.

South Korea has taken steps to reclassify crypto trading and brokerage firms as "venture companies," which would grant these firms access to government subsidies, tax incentives, and financial support. This move is part of the country's efforts to foster innovation and growth in the crypto industry. Meanwhile, New Zealand has implemented stricter regulations, banning crypto ATMs and capping international transfers at $5,000 as part of its new Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime.

The approval of the first spot ETF by the US Securities and Exchange Commission (SEC) has been seen as a significant win for the crypto community. Although the market initially responded with caution, many analysts expect ETFs to attract significant investment from both institutional and retail investors. This could help increase liquidity and reduce price swings over time by making crypto exposure more accessible. The SEC's approval signals a growing openness to crypto investing as the market matures and better safeguards are established.

Investors are also keeping an eye on the performance of US BTC and ETH ETFs, which continue to see positive, albeit minor, flows. BlackRock leads the list with significant inflows, while other firms like Fidelity, Bitwise, and Valkyrie also saw minor positive flows. The crypto market sentiment is largely unchanged, with prices and sentiment moving sideways as investors await further signals. The overall market capitalization has fallen 2.5% to $3.44 trillion, reflecting the mixed sentiment and cautious approach of investors.