The crypto market concluded the week with a cautious upward trend, as Bitcoin surged from $107,000 to over $111,000. While Bitcoin saw significant gains, altcoins exhibited a mixed performance. This cautious optimism is fueled by expectations surrounding ETF approvals, increasing institutional inflows, and anticipations of Federal Reserve interest rate cuts, although volatility remains a consistent presence in the market.
Several key developments highlight the renewed momentum across the crypto landscape. One of the most notable predictions comes from Tom Lee of FundStrat, who envisions a major rally in the cryptocurrency market by 2025. According to Lee, four catalysts are poised to drive this resurgence: anticipated Fed rate cuts following a period of declining inflation, the potential resolution of the U.S. government shutdown that could facilitate altcoin ETF approvals, an upcoming trade meeting between Donald Trump and Xi Jinping, and a significant rise in institutional demand as Bitcoin and Ethereum-focused funds draw in billions of dollars from investors.
In another major development, Swiss financial institution Sygnum has partnered with Bitcoin lender Debifi to launch what they claim is the world’s first bank-backed Bitcoin loan platform, named MultiSYG. Set to debut in 2026, the platform employs a 3-of-5 multi-signature wallet system that allows borrowers to maintain on-chain control of their collateral. This innovative approach aims to combine self-custody with institutional transparency and security, targeting high-net-worth individuals and institutional clients.
The political landscape also played a role in the market’s movement, particularly following former President Donald Trump’s recent pardon of Binance founder Changpeng “CZ” Zhao. This decision has led to speculation regarding the potential pardon of Sam Bankman-Fried (SBF), the former CEO of FTX. Traders on Polymarket are now estimating the chances of a SBF pardon at around 11% to 16%, motivated by Trump’s pro-crypto stance and a trend of pardoning white-collar individuals.
Meanwhile, Bitcoin Cash experienced a resurgence, climbing past $487 after T. Rowe Price, a substantial asset manager with $1.8 trillion under management, filed for an Active Crypto ETF that includes Bitcoin Cash. This move has revitalized institutional optimism in the asset, even though the broader market has faced challenges. Analysts have identified $496 as a crucial resistance level, with a potential upward trajectory towards $550 if momentum continues to build.
Arbitrum has emerged as a leader in the real-world asset (RWA) sector, boasting a 130% increase in its total value locked over the last month to reach $904 million. This growth is attributed to partnerships with firms such as Securitize and Robinhood, with Arbitrum recording RWA volume of $4.24 billion and 86 million monthly transactions, even amidst a decline in its native asset price.
Chainlink has exhibited signs of recovery after a 24% decline over the past month, with large investors, or “whales,” accumulating more than $116 million in LINK tokens. Analysts suggest that a breakout above the $25 mark could propel LINK towards a target of $100, bolstered by strong on-chain metrics and an uptick in developer activity.
In an intriguing intersection of AI technology and trading, Alpha Arena has initiated an “AI Trading Showdown,” featuring six leading AI models competing in live trading tests, with a total prize pool of $60,000. After 72 hours of trading, DeepSeek leads the pack with a total of $13,830, while Gemini finds itself at the back with $6,864, providing a rare glimpse into AI performance under real market conditions.
XRP, on the other hand, seems poised for a potential rebound, buoyed by chatter around ETF approvals and Ripple’s expansion plans that include a stablecoin, RLUSD, inching closer to the $1 billion mark. The firm’s announcement of a $1 billion XRP buyback, combined with rising RWA activity and speculated Fed rate cuts, may further enhance positive sentiment around XRP, signaling a potential resurgence on the horizon.
