Crypto Rally Cools, but Momentum Remains Intact, Says Coinbase
After a strong week of gains, the cryptocurrency market took a pause on Friday as investors engaged in profit-taking amid heightened optimism over U.S. regulatory developments and institutional demand. Analysts at Coinbase remain bullish, suggesting that the rally still has room to run.
Bitcoin (BTC) declined to $117,500 during U.S. trading hours, slipping from earlier levels above $120,000 and ending the day down 0.6%. Despite the pullback, BTC remains just slightly lower on the week after briefly touching $124,000 on Monday.
Ethereum (ETH) surged near its 2025 high of $3,700 before pulling back to around $3,550, maintaining a 4.5% daily gain and over 20% weekly growth. Meanwhile, XRP climbed to a new all-time high of $3.60 before retreating below $3.40, still up more than 4% on the day and 35% for the week.
The CoinDesk 20 Index, which tracks performance across major cryptocurrencies, hit a new high of 4,133 before falling 3.7% from that peak.
Altcoins Outperform as Capital Rotates
Altcoins outpaced Bitcoin this week, with notable gains in large-cap tokens. DOGE, SUI, ADA, AVAX, and UNI all recorded double-digit weekly gains, as market participants diversified exposure beyond BTC.
This rotation reflects growing confidence in broader crypto markets and a search for higher beta opportunities, particularly in projects aligned with emerging use cases.
Policy Tailwinds Add Support
Much of the week’s momentum was driven by optimism surrounding U.S. legislative progress. The GENIUS Act, which aims to regulate stablecoins, is expected to be signed into law by President Trump, potentially marking the first significant federal crypto regulation in the United States.
Macroeconomic sentiment remains mixed. A July survey from the University of Michigan showed consumer sentiment still 16% lower than December levels. However, inflation expectations are cooling: one-year outlooks dropped to 4.4% from 5%, and five-year projections eased to 3.6% from 4%.
Coinbase: Rally Is Fundamentally Driven
In a report released Friday, Coinbase analysts led by David Duong emphasized that the current uptrend is underpinned by healthy market structure rather than speculative excess.
“This rally is supported by strategic accumulation, improving global liquidity, and consistent institutional flows via ETFs and corporate treasuries,” Duong wrote. “Pullbacks may occur, but current on-chain and market signals suggest Bitcoin’s rally is grounded in fundamentals, not late-cycle hype.”
