By Linh Tran, Market Analyst at XS.com
Bitcoin (BTC), along with many other cryptocurrencies, posted an impressive gain over the weekend, with BTC continuing to affirm its leadership position as it approaches its all-time high.
The upward momentum of the world’s largest cryptocurrency is being reinforced by a strong inflow of institutional capital—an element long regarded as the foundation of sustainable growth cycles. In the first half of 2025, cryptocurrencies, with their scarcity and limited supply, have become one of the top-performing asset classes, competing directly with traditional assets such as gold.
The presence of large institutions in the market is becoming increasingly evident. Significant Bitcoin ETF investments from prestigious universities such as Harvard and Brown are prime examples, with Harvard alone allocating as much as USD 116 million to BlackRock’s iShares Bitcoin ETF. This not only reflects long-term confidence in Bitcoin’s growth potential but also serves as a solid support cushion for prices during market corrections.
At the same time, the regulatory environment is becoming more favorable, as Ripple’s legal victory over the SEC has enhanced clarity regarding the regulatory framework for digital assets. Another notable development is El Salvador’s enactment of a law allowing banks to operate as Bitcoin banks, potentially attracting additional demand from the traditional financial system and laying the groundwork for new institutional capital inflows.
Beyond Bitcoin, the altcoin market is also experiencing dynamic developments. Ethereum (ETH) has been surging, fueled by strong ETF inflows totaling USD 3.266 billion—coinciding with ETH’s breakout to USD 4,326. Institutional interest in Ethereum is creating the potential to shift the dynamics of the altcoin market.
In addition, futures-based ETFs for Solana (SOL) and XRP have attracted around USD 1 billion since their launch, paving the way for potential spot ETFs in the future. Notably, Ripple is benefiting not only from these inflows but also from its legal victory over the SEC, providing an additional boost to market sentiment.
Alongside these developments, the current macroeconomic and geopolitical backdrop is also shaping the outlook for cryptocurrencies.
Weaker-than-expected U.S. economic data is strengthening expectations for a monetary easing cycle by the Federal Reserve (Fed)—a factor that typically benefits risk assets such as cryptocurrencies. On the trade front, U.S. President Donald Trump has shown a willingness to make concessions in advancing negotiations with China, though Beijing has so far remained hesitant. On the geopolitical side, President Trump has also confirmed that he will meet with Russian President Vladimir Putin on August 15 in Alaska, with the aim of seeking a ceasefire or an end to the Russia–Ukraine conflict. These signals, while uncertain, are temporarily helping to ease risks and support market sentiment.
Taken together, these factors paint a positive short- to medium-term outlook for the cryptocurrency market. Bitcoin has the opportunity to break through its all-time high and target new, higher price levels, while Ethereum and several large-cap altcoins such as SOL and XRP are likely to extend their gains if strong ETF inflows persist.
However, given the market’s high sensitivity to policy and geopolitical developments, investors should maintain disciplined risk management and closely monitor institutional capital flows to seize opportunities while safeguarding investment gains.