Crypto Market Hovers Near $4T as Traders Await Catalyst; Fed in Spotlight
The cryptocurrency market continues to flirt with a $4 trillion valuation but has yet to make a sustained push above that level. Total market cap reached $3.93 trillion on Wednesday, the third such attempt in just under a month, as capital rotation and technical indecision dominate sentiment.
Despite positive macro conditions—including a rally in equities and rising institutional demand for Ethereum—crypto remains range-bound, with traders hesitant to deploy fresh capital without a clear bullish trigger.
“This mirrors the pattern we saw at the end of June,” said Alex Kuptsikevich, chief market analyst at FxPro. “Inflow patterns appear to follow a monthly cycle, with early-month enthusiasm giving way to caution as we near month-end.”
Bitcoin and Ethereum Momentum Slows
Bitcoin (BTC) traded in a narrow band between $117,000 and $119,000, last seen around $118,500. The top cryptocurrency remains slightly positive on the week, but softening funding rates and declining volumes on platforms like CME and Coinbase suggest reduced momentum.
Ethereum (ETH), which rallied 22% last week, has also cooled. ETH traded near $3,670 at press time, with ETF excitement and staking inflows appearing to plateau after a frenetic run.
BNB Hits $800, While Altcoins Pause
BNB crossed the $800 mark early Wednesday, lifting sentiment across related ecosystem tokens such as PancakeSwap (CAKE) and memecoin FLOKI, both of which rose as much as 10%.
Still, the broader altcoin rally has lost steam. Solana (SOL) is up 18.2% over seven days but slipped 1.3% in the past 24 hours. Cardano (ADA) and XRP—last week’s leaders—are now flat. Even Dogecoin (DOGE), which surged 27.1% amid ETF rumors and a $500 million accumulation by Bit Origin, is now cooling.
Despite the slowdown, sentiment remains elevated. The Crypto Fear & Greed Index climbed to 74, just below the “extreme greed” threshold of 75 that has often preceded local tops.
“The market lacks a fresh catalyst to break higher,” Kuptsikevich added. “Approval of a staking-enabled ETF or expanded altcoin inclusion in ETFs could provide that spark.”
Fed Policy and Political Pressure Ahead of July 30 Meeting
Markets are also closely watching the U.S. Federal Reserve, which faces growing political pressure to cut interest rates ahead of its July 30 meeting. President Trump and some of his appointees have called for easing, even as inflation remains stubbornly high.
While Fed Chair Jerome Powell is expected to hold rates steady this month, internal divisions within the FOMC are becoming more visible. A Reuters survey shows over 70% of economists are now concerned about the Fed’s independence.
Traders have largely priced out a July cut, with CME FedWatch data showing just a 53% chance of a rate move in September. Still, with trade deadlines and macro uncertainties looming in early August, any signs of dovish policy could serve as a bullish tailwind for digital assets.
