Crypto Market Rallies as Fed Rate Cut Hopes and Institutional Inflows Drive Momentum - Coinedict

The global cryptocurrency market surged on August 13, 2025, as favorable macroeconomic data, strong institutional buying, and renewed investor confidence pushed major digital assets higher. Bitcoin, Ethereum, and Solana all posted solid gains, with Ethereum leading the charge.

Macro Tailwinds Boost Risk AssetsFresh U.S. inflation data met expectations, reinforcing market bets that the Federal Reserve will cut interest rates in September. A rate cut would inject more liquidity into the economy, creating a bullish environment for risk assets like cryptocurrencies.

“The CPI numbers gave traders exactly what they wanted — no surprises,” said a market analyst. “That keeps the door wide open for a September rate cut, and crypto is reacting positively.”

Ethereum Steals the SpotlightWhile Bitcoin climbed 0.4% to $119,052, Ethereum jumped an impressive 8.3% to $4,634 — inching closer to its all-time high from 2021. Massive institutional inflows into ETH exchange-traded funds (ETFs) fueled the rally, with $523.9 million entering ETH ETFs in just one day, compared to $66 million for Bitcoin ETFs.

This surge signals a growing shift in institutional preference toward Ethereum, driven by its strong DeFi, NFT, and smart contract ecosystems.

Corporate Treasuries Add BitcoinThe market also received a confidence boost from reports that more companies are adding Bitcoin to their balance sheets, strengthening its reputation as a hedge against inflation and a digital store of value.

Market Sentiment on the RiseThe Crypto Fear & Greed Index rose to 63, placing the market firmly in “greed” territory — though analysts say conditions aren’t overheated yet. Glassnode data showed that new Bitcoin buyers are paying a premium, a sign of strong near-term demand.

Adding to the bullish mood, the total cryptocurrency market capitalization reached $4.12 trillion, surpassing Apple’s market cap in a symbolic milestone for the industry.

Solana Leads Large-Cap GainsSolana was another standout performer, soaring 12.3% to $196.70. Analysts credit the rally to growing activity in its DeFi and NFT ecosystems, along with its high-speed, low-cost transactions.

**What’s Next for the Market?**Bitcoin now faces key resistance between $120,500 and $123,250. A breakout above this level could send prices toward $127,000, while strong support sits at $116,000 and $112,000. Traders are also watching U.S. dollar strength and Treasury yields for potential shifts in momentum.

With Ethereum’s momentum building, corporate adoption rising, and macro conditions turning favorable, the stage is set for a potentially historic Q4 in the crypto market.