- Bitcoin closes above $122K with strong momentum and targets the $123K resistance
- Ethereum trades above $4,300 as it approaches its strongest price level since 2021
- Spot ETF inflows and blockchain network upgrades support long-term growth in the crypto sector.
The cryptocurrency market sentiment is witnessing significant developments as Bitcoin surges beyond $120,000. On August 11, Bitcoin closed at $122,163.66, up 2.41% from its $119,294.27 open. The day’s high reached $122,188.00, while the low touched $118,972.59, showing steady intraday resilience. This performance came after a rebound from $112,003.00, which pushed the price above the 0.236 Fibonacci retracement at $120,576.28. Now, BTC’s next upside target stands at $123,224.57, and breaking this level could set a new all-time high.
Source: TradingView
Following Bitcoin’s surge, Ethereum (ETH) also moved higher, closing at $4,322.80 with a 1.70% daily gain from its $4,250.58 open. While its high reached $4,349.81, the low dipped to $4,238.52, leaving it just below the $4,413.40 resistance, its strongest since 2021. The rally came after a sharp bounce from $3,354.28, lifting ETH above the 0.236 Fibonacci at $4,163.45 and signaling firm bullish control.
Source: TradingView
Institutional Inflows Keep Demand Strong
In 2025, spot Bitcoin ETFs have drawn more than $51 billion in cumulative net inflows, and a notable $1.18 billion, which was gained in 24 hours. Institutional holdings now stand at about 1.86 million BTC, compared with 1.25 million last October. Similarly, spot ETH ETFs have seen widespread demand, which helped push ETH beyond $4,000 for the first time this year.
BlackRock’s IBIT fund added roughly $156.6 million in BTC, while its ETHA fund gained around $104 million in ETH. These inflows have built a consistent layer of buying pressure, supporting prices through recent volatility. Technicals confirm this strength: BTC’s 9-day EMA at $117,734.29 aligns with the 0.5 Fibonacci at $117,613.78, while ETH’s 9-day EMA at $4,011.42 works alongside the 0.236 Fibonacci at $4,163.45 to hold the trend.
Momentum readings also favor buyers. BTC’s MACD line is at 998.56, above the signal line at 673.48, with a positive histogram of 325.08. ETH’s MACD line at 242.43 leads the signal line at 203.99, with a histogram of 38.44.
Macro Changes Expand the Market
As reported by the Economic Times, persistent inflation fears, volatile bond markets, and weakening fiat currencies are steering capital toward Bitcoin as a “digital gold.” This shift is gaining speed because policy changes are opening new channels for investment.
Recently, President Donald Trump signed an executive order allowing 401(k) retirement plans to include cryptocurrency, giving access to the $43 trillion U.S. retirement market. With yields on traditional assets falling, both retail and institutional investors are finding crypto increasingly attractive as a diversification tool. Combining with ETF inflows, these macro conditions create a powerful combination of liquidity and sentiment, boosting the price of Bitcoin and Ethereum.
Related: Ethereum Hits $4K Driven by Whale Buys and Corporate Holdings
Network Upgrades Enhance Utility
Meanwhile, blockchain fundamentals are strengthened in parallel with market inflows. Bitcoin’s Lightning Network adoption is expanding, improving scalability and real-world payment use, while Ethereum’s post-Merge upgrades have reduced gas costs and boosted staking yields, thus garnering attention from developers and investors.
On-chain data shows that institutions and whales have collected over 1.035 million ETH, which is worth about $4.17 billion, during the rally. This sustained buying reinforces the uptrend while network improvements make holding these assets more attractive for the long term.
In an interview with CNBC, Matthew Hougan, chief investment officer at Bitwise Asset Management, hinted that Bitcoin’s historic four-year price cycle could potentially change due to evolving investor profiles and favorable regulations. “It’s not officially over until we see positive returns in 2026. But I think we will, so let’s say this: I think the 4-year cycle is over.”
