BTC Holds Firm Near $120K While ETH Approaches $4.7K on Trump-Fueled Optimism and Rate Cut Hopes

Ethereum Extends Rally on ETF Momentum, Trump Crypto Push, and Fed Cut Bets

Crypto markets advanced sharply Wednesday as Ethereum (ETH) led gains, buoyed by a surge in ETF inflows, supportive macro signals, and rising political attention. Traders positioned for continued upside in ETH, citing a widening gap in volatility between Ether and Bitcoin (BTC).

“Bitcoin’s implied volatility remains near historic lows, while ETH’s short-term vol has spiked. That’s a clear sign traders expect more near-term action and upside in Ethereum,” one options trader noted.

Political and Policy Tailwinds Strengthen Risk Appetite

The move gained traction after U.S. Treasury Secretary Scott Bessent proposed the Fed consider a 50 basis point rate cut at its September meeting. The suggestion, combined with persistent ETF demand, sent ETH up nearly 30% on the week — a move often followed by broader rotations into altcoins.

Markets also reacted to fresh political commentary after President Donald Trump reportedly directed regulators to explore adding crypto and private equity to 401(k) retirement plans. While still in early stages, the prospect of retirement-driven crypto demand introduces a potentially significant structural shift.

ETH ETF Flows Surge Toward $2B Weekly Inflow

Ethereum-linked ETFs registered over $520 million in net inflows on Tuesday, data shows, pushing weekly inflows toward the $2 billion mark for the first time. The flows added fuel to the ETH rally, with prices nearing the $4,700 mark — a key psychological level ahead of all-time highs.

“Ethereum’s breakout above $4,600 is a signal of growing institutional confidence,” said Nick Ruck of LVRG Research. “Combined with dovish rate expectations and scaling upgrades, this puts ETH in a strong position to lead.”

Market Snapshot

Ethereum (ETH): Up nearly 30% weekly; approaching ATH near $4,800
Bitcoin (BTC): Holds firm near $121,000, consolidating below $122,000
Solana (SOL): +12% to $198
BNB Chain (BNB): +5% to $837
XRP: +4% to $3.25
Dogecoin (DOGE) & Cardano (ADA): Both +8%, mirroring ETH momentum

Altcoin Rotation Inverts Usual BTC-Led Rallies

FxPro analyst Alex Kuptsikevich highlighted a reversal in market dynamics. “This time, altcoin strength is lifting Bitcoin, not the other way around. BTC is now testing historic resistance near $122,000, with eyes on the $135K–$138K band,” he said.

Volatility Signals: ETH Heating Up, BTC Flatlining

Implied volatility in ETH options — especially short-dated contracts — has climbed significantly. Traders interpret this as a signal of increased expectations for near-term price action. In contrast, BTC’s IV remains subdued, suggesting lower anticipated volatility.

“Mainstream equity analysts are starting to join the Ethereum trade,” noted Augustine Fan of SignalPlus. “That FOMO effect, plus ETF momentum and macro support, sets the stage for continued rotation into ETH and altcoins.”