BTC Falls Below $118K, ETH and XRP Cool Off; Coinbase Maintains Bullish Outlook

Crypto Rally Cools as Bitcoin Dips Below $118K, But Market Fundamentals Remain Strong: Coinbase

The multi-day crypto rally lost some steam on Friday as traders moved to lock in profits following a surge fueled by legislative momentum and bullish sentiment. Still, analysts say the rally is built on solid ground — not hype.

Bitcoin (BTC) dropped to around $117,500 during U.S. trading hours, sliding from early-session levels above $120,000. The top cryptocurrency is now flat on the week, despite briefly touching $124,000 earlier.

Ethereum (ETH) soared to just under $3,700, its highest level this year, before easing to $3,550 — up 4.5% on the day and over 20% for the week.

XRP hit a new record high of $3.60 before pulling back to $3.40, but still holds a 35% weekly gain and remains among the top-performing large-cap tokens.

The CoinDesk 20 Index, which tracks leading crypto assets, hit an all-time high of 4,133 before retracing nearly 4%, reflecting broad-based profit-taking.

Altcoins Take the Lead

As BTC cools, capital is rotating into altcoins. ETH and XRP led the charge, while Dogecoin (DOGE), Sui (SUI), Cardano (ADA), Avalanche (AVAX), and Uniswap (UNI) all posted double-digit weekly gains.

Analysts describe the trend as the early stages of a potential “altcoin season,” with risk-on sentiment pushing traders into smaller-cap plays.

Policy Tailwinds & Market Context

Optimism was boosted earlier in the week by signs that President Trump is preparing to sign the GENIUS Act — the first major U.S. federal law focused on crypto, particularly stablecoins. Although markets are digesting gains, the legislative momentum remains a bullish backdrop.

Meanwhile, macro data from the University of Michigan showed consumer sentiment remains subdued, down 16% since December, while inflation expectations declined but stayed elevated. One-year inflation projections eased to 4.4%, and long-term expectations fell to 3.6%.

Coinbase: This Is No Bubble

Despite the price pullbacks, Coinbase analysts say the current uptrend isn’t based on speculation. In a Friday note, David Duong and team emphasized that structural strength, ETF flows, and institutional accumulation are driving the move.

“Markets aren’t showing frothy behavior,” they wrote. “Global liquidity remains supportive, and demand from treasury managers and institutional allocators continues to rise.”

They added: “Short-term corrections are expected, but the broader rally is supported by healthy fundamentals — not late-cycle exuberance.”