Bitcoin Hits $110K, Ethereum Tops $4K in Crypto Rebound

The cryptocurrency recovery proved remarkably comprehensive, with major digital assets beyond Bitcoin and Ethereum posting substantial gains. According to CryptoSlate data, BNB, XRP, Solana, Dogecoin, Tron, and Cardano each climbed between 5% and 8%, indicating market-wide momentum rather than isolated strength in the two largest cryptocurrencies. This broad-based resurgence suggests renewed investor confidence across the digital asset spectrum, with traders particularly noting Ethereum’s breach of the $4,000 level as technically significant after weeks of trading below this threshold.

The coordinated upward movement across multiple major cryptocurrencies represents a notable shift from the pattern that followed President Donald Trump’s announcement of new tariffs on Chinese imports, which had triggered market-wide declines. The current rally’s breadth indicates that investor optimism extends beyond Bitcoin’s digital gold narrative to include fundamental confidence in the broader crypto ecosystem, including smart contract platforms like Ethereum and Solana, payment-focused assets like XRP, and meme-inspired tokens like Dogecoin.

The current market uplift finds its foundation in substantial capital movements, with blockchain analysis platform Lookonchain tracking more than $6 billion in new Tether’s USDT and Circle’s USDC stablecoins entering circulation since last week. This massive stablecoin issuance typically precedes renewed spot buying activity, as investors rotate from cash sidelines into dollar-pegged tokens to fund token accumulation. The mechanism reflects classic ‘buy the dip’ behavior, where market participants use price declines as entry opportunities.

This pattern mirrors developments in traditional markets, where data from The Kobeissi Letter citing Bank of America shows US equity investors bought $3.9 billion in stocks last week after three consecutive weeks of outflows. Notably, net inflows to single stocks hit $4.1 billion, the fifth-highest since 2008 and the largest on record for a week when the S&P 500 fell at least 1%. The parallel between crypto and traditional market behavior underscores how ‘buy the dip’ sentiment has become a cross-asset phenomenon, driven by institutional inflows of +$4.4 billion (the most since November 2022) and retail purchases of +$1.1 billion.

Despite the encouraging price action, market sentiment remains measured. Bitwise’s Cryptoasset Sentiment Index continues to signal a broadly bearish posture, with readings consistent with what analysts describe as a ‘high-risk, high-reward’ setup for Bitcoin. This cautious assessment reflects ongoing concerns about market volatility and external economic factors, including lingering effects from US-China trade tensions.

However, emerging signals suggest potential for continued recovery. Bitwise’s intraday sentiment model now shows a bullish divergence forming, which technical analysts interpret as an early sign of short-term reversal. Galaxy Research echoed this cautiously optimistic tone, noting that while last week’s flash crash ‘put a meaningful dent in asset prices,’ the broader setup ‘remains constructive.’ Their analysis emphasizes Bitcoin’s positioning as digital gold to capitalize on fundamental doubt about government fiscal and monetary prudence, while the rise of tokenization and stablecoins coupled with an extremely favorable U.S. regulatory outlook should buoy the prospects of other important digital assets like ETH and SOL.

The combination of technical recovery, substantial capital inflows, and analyst recognition of constructive fundamentals creates a complex but promising landscape for cryptocurrency markets. While the Bitwise sentiment index reminds investors of ongoing risks, the coordinated rally across major digital assets, substantial stablecoin preparation for buying, and parallel traditional market behavior suggest this recovery may have staying power beyond short-term technical bounces.