Hey there, and happy Friday!
Crypto markets are shifting, and fast. While Bitcoin cools off after its explosive run, Ethereum is quietly gaining ground, fueled by strong capital inflows and growing momentum on its BTC pair. Traditional markets, on the other hand, are flashing signs of fatigue, which could set the stage for a broader rotation into digital assets.
This week wasn’t just about price, it was about positioning. Big players are moving, narratives are evolving, and Ethereum might just be taking the lead in crypto’s next big chapter. Let’s get into the key themes reshaping the market.
Here’s what we’ll cover today:
🌍 Market Recap & Macro Overview: The Fed stands firm while inflation remains sticky. Equities are looking tired, and crypto may be ready to take the baton. Ethereum ETF flows offer a big clue.
📈 Bitcoin (BTC) Breakdown: A healthy cooldown or something more? Bitcoin drops below key levels as ETF outflows hit. Why $116,900 is the zone to watch heading into the weekend.
📊 Ethereum (ETH) Outlook: ETH shows relative strength amid the volatility. Consistent ETF inflows and resilience vs. BTC suggest Ethereum could be stepping into a leadership role.
🚀 Solana (SOL) Analysis: Solana slides further, nearing make-or-break support. As ETH dominance grows, SOLBTC cracks key levels, what it means for altcoin momentum ahead.
Let's dive in!
🌍 Market Recap & Macro Overview:
The Federal Reserve held rates steady in the 4.25%-4.5% range for the fifth consecutive meeting, with Chair Powell emphasizing that current rates remain "moderately restrictive." The central bank continues balancing growth support against persistent inflation above the 2% target. Market pricing now shows a 54.9% probability of unchanged rates through September, up from 35.4% just a day prior.
S&P 500 Rally Loses Steam in Final Stretch of July (Bloomberg)
Despite reaching new highs above 6,200 in July, the S&P 500's momentum appears to be waning with flattening price action in the month's final stretch. The index has rallied 25% from April lows around 4,900, pushing valuations to stretched levels. This market behavior supports our view that alternative assets like Bitcoin may begin to outperform as investors seek diversification away from overvalued traditional markets.
Bleak Outlook (Source: Bloomberg)
Bloomberg's latest economist survey reveals a dramatically shifting narrative for 2025, with GDP forecasts slashed from over 2% to approximately 1.3% by July. Meanwhile, Core PCE inflation expectations have risen from 2.2% to nearly 2.8% over the same period.
ETHA ETF Sees Record Monthly Inflow (Source: Bloomberg)
The iShares Ethereum Trust ETF recorded its largest monthly inflow to date at over $4 billion in July, representing a dramatic acceleration from modest previous flows. This surge signals a potential inflection point in institutional adoption of digital assets beyond Bitcoin.
The massive inflow validates our bullish stance on the broader crypto ecosystem, as ETF flows serve as leading indicators of mainstream institutional acceptance.
Now let’s dive into the part you’re really here for: the charts, key levels, trade scenarios and what’s next for Bitcoin, Ethereum and Solana. 🔥
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