Crypto Market Conditions ‘Exceptionally Strong’ as Bitcoin, Ethereum, XRP Advance

Bitcoin hit record highs on Wednesday with the increasing odds of an easier monetary policy from the U.S. Federal Reserve.

The top crypto is up 3.6% in the past 24 hours and is trading near $123,500, following a record high of $124,128 earlier in the trading session, according to CoinGecko data.

“Liquidity is being shovelled into risk assets right now, and there is no obvious sign of any overheating, Pav Hundal, lead market analyst at Swyftx, told Decrypt. “Funding rates are well within normal ranges across all the major global exchanges.”

With the odds of a September rate cut soaring above 90%, a lower interest rate would encourage borrowing and stimulate spending. The stock market and crypto tend to rise in such environments, as investors seek higher yields from risk assets.

“When Bitcoin enters price discovery, I focus on orderbook dynamics,” David Lawant, head of research at crypto prime brokerage FalconX, told Decrypt.  

“So far, conditions look exceptionally strong,” Lawant added. “Bitcoin has held near all-time highs for weeks despite heavy selling pressure in the order books. Setups like this can fuel explosive rallies once that selling pressure recedes.”

Renewed buying pressure and confidence can also be attributed to the crypto-friendly regulatory climate in Washington under U.S. President Donald Trump’s administration. 

“Digital Asset Treasuries” are the primary reason for Ethereum’s recent ascent, Sean Dawson, Derive’s head of research, told Decrypt on Monday. He explained that DATs have the “ability to pass on staking rewards, something ETFs are currently unable to do.”

It follows a development by the U.S. Securities and Exchange Commission in May, which exempted self-custodial staking from securities laws.

With the added regulatory clarity and increased investor confidence, Dawson expects Ethereum to surge past his year-end target of $6,000 and hit $8,000 to $10,000. He gives these targets a 20% to 10% odds.

Increased “regulatory clarity from the SEC v. Ripple case resolution” is one of the primary reasons for XRP’s recent ascent, Ryan Lee, chief analyst at Bitget research, told Decrypt.

He sees XRP reaching as high as $5.81 this year, with broader adoption potentially driving the token toward $9 by the end of 2026.

Still, the “clear danger” is the market’s assumption that the Fed will cut rates next month, Swyftx’s Hundal cautioned.

“Despite the fact that core CPI ticked up slightly, we don’t know what the full impact of tariffs is going to be,” he said. “It feels like we’re priced for perfection, and that makes me nervous.”