Crypto Market Experiences Modest Dip, but Positive Sentiment and Inflows Continue
The cryptocurrency market saw a slight dip in its overall market capitalization, but the positive sentiment and strong inflows remain intact, especially with significant movements in altcoins.
Ether (ETH) and Dogecoin (DOGE) were among the top performers on Wednesday, each posting a 9% increase in the past 24 hours. Both tokens have been on a bullish streak, with double-digit gains over the past week.
The broader market showed moderate growth, with the total market capitalization rising by 1.7%, according to CoinGecko. Bitcoin (BTC) was trading around $103,700 during the Asian morning hours.
Ethereum traded above $2,600, while Dogecoin was hovering around 24 cents. Other major altcoins such as XRP, BNB (Binance Coin), Cardano (ADA), and Solana (SOL) gained between 3% and 5%.
Despite the positive price action in many altcoins, crypto traders are beginning to feel the pressure from macroeconomic factors and are warning of potential short-term profit-taking. A strengthening dollar and renewed trade tensions have tempered momentum, even as Bitcoin approaches record highs.
Alex Kuptsikevich, chief market analyst at FxPro, explained that “the strengthening dollar on news of tariffs has been a natural drag on cryptos.” He added that Bitcoin’s proximity to recent highs has led to short-term profit-taking after its rally in just over a month.
As global markets shift from protectionism to cautious optimism, Bitcoin finds itself caught between two opposing narratives. Traders from QCP Capital noted, “BTC remains caught in a tug-of-war between its identity as ‘digital gold’ and its function as a risk-on proxy.” This ongoing tension is preventing a clear directional trend for the cryptocurrency. With a shift toward trade optimism in macro markets, Bitcoin could remain range-bound for the time being.
Nonetheless, sentiment remains strong. The Fear & Greed Index, a widely tracked measure of market sentiment, has remained above 70 for four consecutive days, indicating a prevailing “greed” level that often signals continued bullishness in the short term.
Kuptsikevich also mentioned Bitcoin’s volatile nature, stating, “Bitcoin showed its unpredictable nature on Monday. But with positivity remaining, it’s worth paying attention to the price dynamics near $105,000. Will we see an acceleration or a new failure? The answer will guide the coming days.”
On the institutional side, recent fund flow data from CoinShares revealed $882 million in inflows last week, marking the third consecutive week of strong buying. Bitcoin led the charge with $867 million in inflows, while Ethereum saw over $1.8 million. Interestingly, Solana (SOL) saw $3.4 million in outflows despite traders loading up on $200 call options expiring in late June.
