Ethereum also broke through the $4,000 barrier for the first time in weeks, up more than 4% to around $4,045, a level that traders view as technically significant.
Notably, other major digital assets joined the market momentume with their own rally.
The current uplift can be linked to the current “buy the dip” sentiments pervading the market.
Stablecoin issuance often precedes renewed spot buying activities. In this case, capital appears to be rotating from cash sidelines into dollar-pegged tokens to fund token accumulation.
Meanwhile, the sentiment mirrors trends in traditional markets.
Analysts at the firm pointed out that net inflows to single stocks hit $4.1 billion, the fifth-highest since 2008 and the largest on record for a week when the S&P 500 fell at least 1%.
They added:
“This was driven by institutional inflows of +$4.4 billion, the most since November 2022. Retail investors bought +$1.1 billion, marking their 2nd weekly purchase out of the last 6.”
However, the asset manager’s intraday sentiment model now shows a bullish divergence forming, which is an early sign of a short-term reversal.
They wrote:
“Bitcoin remains well positioned as digital gold to capitalize on fundamental doubt about government fiscal and monetary prudence, while the rise of tokenization and stablecoins coupled with an extremely favorable U.S. regulatory outlook should buoy the prospects of other important digital assets like ETH and SOL.”
