Bitcoin Hits Two-Month High as ETF Inflows and Trade Optimism Lift Markets

Market Highlights

• Bitcoin (BTC) surged above US$95,000 for the first time since February.
• Positive sentiment followed softer U.S. - China trade rhetoric from President Trump.
• Bitcoin ETFs attracted US$2.7 billion in inflows, pushing assets under management to a two-month high.
• Meme coins led altcoin gains, with DOGE, PEPE, and BONK posting strong performances.
• The U.S. Federal Reserve withdrew targeted crypto rules, normalising the treatment of digital asset activities.

Markets Overview

Macro Market Updates:

Traditional markets displayed tentative optimism this week as softer comments from President Trump hinted at a possible easing in U.S. - China tensions. Trump stated on Friday that he had spoken with Chinese President Xi Jinping "many times" regarding tariffs, fuelling investor hopes for a breakthrough. However, China’s Commerce Ministry later clarified that no formal negotiations had yet taken place, tempering immediate optimism.

Equity markets finished the week higher, with the S&P 500 gaining 4.59%, the Dow Jones Industrial Average rising 2.48%, and the Nasdaq Composite leading the way with a 6.73% rally, reflecting improved risk sentiment across financial markets.

Bitcoin (BTC)

Bitcoin (BTC) surged 10.07% to break above US$95,000 for the first time in two months before consolidating just below that level. Momentum was fuelled by strong inflows into Bitcoin ETFs, with US$2.7 billion pouring into major funds over the past 7 days and pushing total assets under management to US$108 billion - their highest since February, signalling renewed institutional confidence.

In corporate news, Tokyo-listed Metaplanet Inc. accelerated its Bitcoin accumulation strategy, acquiring an additional 145 BTC for approximately US$13.6 million. The purchase marks a major step towards its ambitious goal of holding 10,000 BTC by the end of 2025, reinforcing corporate conviction in Bitcoin’s long-term value.

Ethereum (ETH)

Ethereum (ETH) mirrored Bitcoin’s positive momentum this week, closing at US$1,792, up 13% over the past seven days. The broader recovery in risk assets, along with renewed demand across the altcoin market, helped lift ETH’s price. Although no major protocol developments were announced, ETH continued to benefit from improving market sentiment and increased investor interest as crypto markets rebounded.

Altcoins

Altcoins also posted strong gains this week, with several standout performers across the board. Among the top 10 cryptocurrencies by market capitalisation, Solana (SOL) climbed 7.34% to close at US$147, buoyed by fresh institutional interest. XRP (XRP) gained 8.41%, while Cardano (ADA) rallied 13.55%. Dogecoin (DOGE) led the pack among major altcoins, jumping 15.50% over the week.

The broader meme coin sector outperformed as well, with speculative fervor returning to the market. Fartcoin (FARTCOIN) rose 19.82%, while Pepe (PEPE) and Bonk (BONK) recorded impressive gains of 16.31% and 51.54%, respectively. The rally in meme coins reflects a broader risk-on environment and highlights the continued influence of retail-driven narratives in crypto markets. 

In Other News

Institutional interest in Solana continued to grow, with Canadian investment firm SOL Strategies announcing it had secured a US$500 million convertible note to accumulate Solana tokens. The agreement, made with New York-based ATW Partners, represents the largest and first investment of its kind within the Solana ecosystem. SOL Strategies, which trades under the ticker HODL on the Canadian Securities Exchange, highlighted the network’s speed and growing developer adoption as key drivers behind its decision.

Meanwhile, Bitcoin’s corporate adoption trend looks set to accelerate. Tether, Bitfinex, Cantor Fitzgerald, and SoftBank revealed plans to launch Twenty One, a Bitcoin-focused company that will list publicly on the Nasdaq through a SPAC merger. With a planned treasury of more than 42,000 BTC (worth approximately US$3.9 billion), Twenty One aims to offer investors Bitcoin exposure through traditional stock ownership. Strike founder Jack Mallers has been appointed CEO of the new venture, which will trade under the ticker XXI and offer lending services and financial products tied to Bitcoin. The business model mirrors that of Strategy (formerly MicroStrategy), positioning Twenty One as a major emerging player in Bitcoin’s corporate landscape.

Regulatory Updates

In a major shift for the U.S. banking sector, the Federal Reserve announced it will no longer require advance notice from member banks engaging in crypto or stablecoin-related activities. Instead, banks will be allowed to manage crypto engagements like any other traditional banking service, subject to standard supervisory oversight. 

The move, which follows similar announcements from the FDIC and the Office of the Comptroller of the Currency earlier this month, effectively ends the restrictive 'Choke Point' practices that had singled out digital assets for heightened scrutiny. Market participants have largely welcomed the change, viewing it as a step toward greater regulatory clarity and mainstream adoption.