Bitcoin prices saw a modest rise on Wednesday, while Ethereum approached record highs, as the cryptocurrency market rebounded on the back of softer US consumer inflation data, which boosted bets on a September interest rate cut.
Altcoins outperformed Bitcoin on Tuesday and Wednesday, as growing risk appetite drove investors toward relatively lower-priced assets like Ether, which had lagged behind Bitcoin’s strong gains in recent months.
The world’s largest cryptocurrency rose 1.5% to $120,500 by 13:40 GMT.
Ethereum Nears All-Time High on Institutional Buying
Ethereum, the second-largest cryptocurrency, climbed to $4,680.23 this week, nearing its November 2021 record of $4,868.8. The rally was fueled largely by increased institutional and corporate buying in recent weeks, with major entities adopting strategies similar to that of MicroStrategy (NASDAQ:MSTR), the largest corporate holder of Bitcoin.
Bitmain Emergent Technologies (NYSE:BMNR), the largest institutional holder of Ether, announced Monday it now holds over 1.15 million tokens worth about $4.9 billion. The firm also unveiled plans to raise an unprecedented $24.5 billion via a stock offering, aimed primarily at purchasing more Ethereum.
In another notable move, 180 Life Sciences Corp (NASDAQ:ATNF), currently restructuring under the name Ether Treasury ETHZilla, disclosed that billionaire Peter Thiel had acquired a 7.5% stake. The announcement on Tuesday sent the company’s stock soaring more than threefold. The firm also revealed it holds around $349 million worth of Ether—82,186 tokens—bought at an average price of $3,806.71 each.
SharpLink Gaming Ltd (NASDAQ:SBET) also completed a $400 million capital raise this week, stating the funds would be fully allocated to buying more Ethereum.
This growing institutional interest has driven Ether to outperform Bitcoin in 2025 so far, with a 39.4% gain versus Bitcoin’s 27.9%.
Altcoins Outpace Bitcoin as Rate Cut Bets Rise
Broader digital asset prices rose faster than Bitcoin on Wednesday, amid increased risk appetite supported by the tame US inflation figures, which bolstered expectations of a September Fed rate cut. The rally also coincided with record highs in other risk-sensitive markets, particularly equities.
Altcoins gained additional support from mounting expectations that companies and institutions will boost their holdings of other digital tokens. XRP, the third-largest cryptocurrency, rose 3.1% to $3.2401, Cardano jumped 8.9%, and Solana surged 13%.
How Institutional Moves Could Shape Bitcoin’s Future
The emergence of spot Bitcoin ETFs marks a significant shift in the market, opening the door to large-scale institutional capital inflows. Giants like BlackRock and Fidelity have ramped up their participation, with analysts noting that such liquidity not only fuels market optimism but also encourages traders to buy at higher price levels. Historically, Bitcoin has thrived in periods of strong institutional backing, acting as a powerful catalyst for price appreciation.
Macro Factors Driving Bitcoin Higher
As Bitcoin edges toward key price levels, broader macroeconomic factors are seen as pivotal in determining its path. Market speculation is centering on a potential Fed rate cut—an event that could spark a push to new record highs. Lower interest rates typically increase demand for high-yielding assets, putting Bitcoin in a favorable position.
The Critical $140K Level
Traders are now watching the psychological $140,000 mark closely, with technical indicators such as a bullish MACD crossover and strong RSI support reinforcing the bullish outlook. A breakout above this level could trigger a wave of FOMO (fear of missing out) among both retail and institutional investors, potentially driving prices sharply higher in a short span.
