What happened?
Crypto markets rallied this morning: total market cap rose 2.3% to about $3.98 trillion and 95 of the top 100 coins are in the green. Bitcoin ticked up roughly 0.8% to $112,676 while Ethereum jumped about 3.9% to $4,159, with trading volume near $246 billion. The move followed Fed Chair Powell’s comments that QT could end soon and came alongside renewed inflows into US BTC and ETH spot ETFs.
Who does this affect?
Traders and investors feel it first, since options positioning shows players are still positioned for upside and ETFs are attracting fresh capital. Large exchanges and retail users are also involved after reports some exchanges blocked small orders during volatility, prompting compensation claims and renewed talks about regulation. Asset managers and ETF providers benefit from inflows, while short-term traders face both squeeze risk and opportunity as sentiment swings.
Why does this matter?
This matters because ETF inflows and the prospect of an end to QT can boost liquidity and push prices toward near-term targets like $114k–$120k for BTC and $4,200–$4,500 for ETH. At the same time, exchange interruptions and a drop in the fear-and-greed index to the “fear” zone mean volatility could spike, creating both buying windows and downside risk. Overall, growing institutional flows plus macro policy signals and exchange stability will be the main drivers of market action in the coming weeks.