Bitcoin hovers near $107,000 as the broader crypto market enters a brief correction phase, with XRP and Solana (SOL) leading the decline among major altcoins. The pullback follows a week of strong gains fueled by easing geopolitical tensions, ETF inflows, and growing regulatory clarity in Asia.
Profit-Taking Hits XRP and Solana
While the market sentiment remains broadly optimistic, investors have booked profits from recent altcoin rallies:
- XRP fell over 4%, reversing earlier gains as traders locked in short-term profits.
- Solana (SOL) slid 3%, testing the $140 support level.
- Other major tokens like BNB, DOGE, ADA, and ETH also posted minor losses under 2%.
Despite the retracement, these moves appear to be healthy consolidations rather than signs of trend reversal.
Bitcoin Stable Amid Supportive Macro Backdrop
Bitcoin (BTC) is trading at $107,338, just shy of its record high near $112,000. Analysts remain confident that the bullish momentum will continue.
“We think conditions are ripe for Bitcoin to surpass its previous all-time high,” said BTSE COO Jeff Mei, citing easing inflation, reduced geopolitical tension, and potential interest rate cuts by the Federal Reserve as key catalysts.
Investor sentiment has been further lifted by the cooling U.S. inflation data and reports that the Trump administration may ease proposed trade tariffs, potentially lowering inflation and boosting risk assets.
ETF Inflows Reflect Growing Institutional Confidence
Another critical tailwind is the steady inflow of capital into crypto ETFs, a clear signal of increasing institutional participation. This trend has helped buffer broader market volatility and provided price support, especially for Bitcoin and Ether.
Asia’s Regulatory Push Boosts Confidence
A major driver of sentiment is the crypto-friendly regulatory stance emerging from Asia, particularly Hong Kong’s Policy Statement 2.0. The updated framework:
- Supports stablecoin licensing
- Encourages tokenization of real-world assets (RWAs)
- Provides clarity for crypto trading platforms
“These developments reinforce Hong Kong’s role as Asia’s digital asset hub,” said Eugene Cheung of OSL. “Clearer guidelines are enabling innovation, while offering reassurance to global investors.”
This stands in contrast to the U.S.’s fragmented regulatory approach, which has created uncertainty for many firms operating in the crypto space.
Outlook Remains Positive
Despite short-term corrections in altcoins like XRP and Solana, analysts and investors maintain a bullish outlook. Key market indicators — ETF inflows, reduced macro stress, and growing global regulatory support — point toward continued upside potential.
As long as Bitcoin holds above $105K and institutional capital keeps flowing, the bull cycle appears well intact.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.