Bitcoin tops $104,000 on rate cut hopes, institutional buying; Altcoins trade mixed

Bitcoin crossed the $104,000 mark on Friday, supported by renewed expectations of US interest rate cuts and rising institutional accumulation, even as ETF inflows showed signs of fatigue.

As of 11:19 AM IST, Bitcoin was trading at $104,017, up 1.5%, while Ethereum rose 0.6% to $2,591. The global cryptocurrency market cap increased 0.63% to $3.33 trillion.

Shivam Thakral, CEO of BuyUcoin, attributed the rally to growing institutional participation and recent developments like the creation of the US Strategic Bitcoin Reserve. “Hong Kong-based Avenir has increased its stake in BlackRock’s Bitcoin ETF to $688 million. If this momentum continues, a broader crypto rally may be around the corner,” he said.

Despite $295 million in spot ETF outflows, Bitcoin is holding steady between $101,650 and $104,300, noted Vikram Subburaj, CEO of Giottus. “Soft US PPI data has strengthened the case for a Fed rate cut. Bitcoin’s short-term momentum indicators remain strong, with $105,200 as the key breakout level,” he added.

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Performance among altcoins was mixed. BNB, Tron, Sui, Litecoin, and Bitget Token gained up to 2%, while XRP, Solana, Dogecoin, Cardano, and Avalanche declined as much as 3%. Hyperliquid surged 8%, entering the top 15 by market cap.

Bitcoin’s market cap rose to $2.066 trillion, maintaining a 62% dominance. Daily trading volumes increased by 13.4% to $51 billion.

Riya Sehgal, Research Analyst at Delta Exchange, said price action remains resilient despite a sharp drop in ETF inflows from $3 billion in April to $228 million this week. “A 36% rebound from April’s low and data showing 97% of holders in profit highlight investor confidence. Whale behavior indicates continued accumulation,” she said.

She noted that Bitcoin faces resistance between $105,000 and $106,000. “A confirmed breakout could open the door to new all-time highs, while a drop below $100,000 might lead to a correction toward $93,000,” Sehgal warned.

She added that macro indicators are turning supportive, with falling US Treasury yields and increasing correlations with equities pointing to a risk-on environment. Adoption by sovereign funds and family offices, highlighted at Consensus 2025, is another bullish factor, she said.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)