The cryptocurrency market closed the week on a strong note with itcoin">Bitcoin maintaining its position above the crucial $100,000 threshold, trading at $103,144 on Friday after briefly touching $104,324—its highest level since January. This marks itcoin">Bitcoin’s fourth consecutive positive week, its longest winning streak since November, with a 6% gain for the week and an 11% increase year-to-date. According to Gadi Chait of Xapo Bank, this movement represents more than mere euphoria but rather indicates a “flows-driven shift” with accumulation by large holders, continued record ETF demand, and investors seeking neutral assets amid global trade tensions, particularly as recent developments in U.S.-UK trade relations and potential China tariff relief have reduced overall risk aversion.
Ethereum emerged as the standout performer, surging 26% for the week—its strongest weekly performance since May 2021—with an impressive 11% jump on Friday alone that contributed to a remarkable 29% two-day gain. This dramatic rally coincided with the successful implementation of Ethereum’s latest technology upgrade, Pectra, which enables lower network fees, streamlined staking processes, and enhanced support for smart wallets. Other altcoins also experienced significant gains, with Solana adding approximately 16% for the week, positioning it for its best weekly performance since January. However, despite these recent surges, most major altcoins including Ethereum (-30%) and Solana (-11%) remain substantially in negative territory for the year compared to itcoin">Bitcoin’s positive returns.
Market analysts attribute this divergence to fundamental structural differences in investment flows. itcoin">Bitcoin has established a more diverse buyer base following the introduction of spot ETFs in 2024, with demand now coming from retirement accounts, macro funds, and corporate bonds. In contrast, altcoins continue to rely primarily on crypto-native, risk-on capital, which hasn’t grown significantly alongside the broader technology sector due to prevailing interest rate conditions. As noted by Wolfe Research analyst Read Harvey, the current recommendation for crypto investors remains focused: “stick to BTC until risk-on headwinds dissipate,” as itcoin">Bitcoin continues to dominate the space on a relative basis, with the key question shifting to whether it can maintain its recent outperformance against traditional equities.
