Crypto Market Rises as Bitcoin Eyes $107K and Ethereum Gains Over 7%

• Bitcoin ETF inflows grow as investors seek alternatives to gold.
• Ethereum maintains strength amid staking momentum and upgrade confidence.

The cryptocurrency market continued its upward trend, with Bitcoin trading near $105,570 and Ethereum jumping more than 7% in the last 24 hours. The move came as traditional financial markets reacted cautiously to Moody’s downgrade of the U.S. credit rating. 

Despite broader economic uncertainty, digital assets gained momentum, supported by strong inflows into crypto investment products. The total crypto market capitalization climbed to $3.50 trillion, led by large-cap stability and small-cap token gains.

Bitcoin and Ethereum Lead Market Recovery

Bitcoin rebounded from earlier losses and is steadily pushing toward the $107,000 mark. Analysts said consistent inflows into spot Bitcoin ETFs and growing institutional interest are helping sustain the rally. 

The recovery came despite liquidating long leveraged positions in the derivatives market. Despite the weakness of the equity market over the weekend, Bitcoin’s performance reinforced its role as a hedge asset for some investors.

Ethereum also saw a strong surge, gaining 7.23% to trade around $2,543. Earlier in the week, it had traded above $2,900, boosted by renewed enthusiasm for staking and the successful Pectra upgrade.

Although no major news drove the token’s performance on Monday, it maintained positive momentum, reflecting market confidence in its ongoing developments.

Other top cryptocurrencies, including Solana (SOL), XRP, Binance Coin (BNB), and Dogecoin (DOGE), recorded modest gains of 2% to 4%. Analysts noted that the broader market continued to strengthen despite ongoing macroeconomic volatility.

Small-Cap Tokens Attract Investor Attention

Small-cap tokens saw sharp gains as investors looked beyond significant assets. MAXWELLCAT surged 186%, while Gooncoin and Tapestry rose 69.1% and 61.3%, respectively. StakeFinance and Collaterize gained over 50% each. Analysts linked these moves to increased retail interest and speculative trading around emerging projects.

However, not all tokens shared in the gains. NYAN, XTER, and XEM posted losses, continuing their downward momentum. Traders pointed to limited liquidity and a lack of catalysts for the declines.

In the broader crypto sector, Solana Labs’ spinout Anza proposed Alpenglow, a major protocol upgrade for Solana. Meanwhile, Circle reportedly held acquisition talks with Ripple and Coinbase, signaling potential shifts in the stablecoin space.

Bitcoin ETFs continued to record inflows, while gold ETFs faced outflows, suggesting a shift toward digital assets. The GENIUS Act on stablecoins passed a key Senate vote in regulatory developments, signaling progress toward more explicit industry rules.