Ethereum $3,422 , the largest altcoin , witnessed a dramatic surge this week, climbing 20% to reach $3,400, marking its highest level in five months. This impressive increase serves as an early indication that capital previously invested in Bitcoin $118,814 has begun to shift towards prominent Layer-1 projects. Meanwhile, altcoins like XRP and Solana $174 experienced a 5% rise, with Cardano $0.800596 , Polkadot , and Chainlink $17 also gaining momentum. With key legislative developments like the Genius Act and Clarity Act on the horizon, alongside a possible ban on a U.S. central bank digital currency, experts are optimistic that the crypto market will surpass critical thresholds in the remaining months of the year.
Strong Momentum in Altcoin Index
For the first time in over a year, CryptoQuant’s MVRV indicator signals sustained momentum in the altcoin market. In this environment, altcoins such as SUI and SEI achieved significant weekly gains of 36% and 41%, respectively, while Ethereum saw a 23.3% increase. Market commentators note that Bitcoin’s stability above $112,000 has fueled altcoin performance; however, any sharp movement in Bitcoin could retract liquidity. As Ethereum surpasses the critical $3,400 threshold, the narrative of an “altcoin season” is gaining traction, with analyst Michaël van de Poppe predicting a target of $4,000 and suggesting short-term pullbacks as buying opportunities.
The broad-based increase in trading volume indicates that capital is flowing not only into high-cap altcoins but also into medium-cap coins that are witnessing heightened on-chain activities. Cardano’s on-chain data supports its recovery through increased address activity, while Polkadot and Chainlink are experiencing additional demand due to news of institutional integrations.
Political Moves Fostering Institutional Interest
The U.S. Congress is currently reviewing three bills which aim to reduce regulatory uncertainty within the crypto market, thereby encouraging institutional investors. The Genius Act, having passed the Senate, proposes a framework for stablecoins, whereas the Clarity Act is set to clarify the classification of cryptocurrencies. Additionally, legislation aimed at blocking a central bank-backed digital currency would reinforce Bitcoin’s status as “digital gold.”
Technical analyst Katie Stockton forecasts Bitcoin will target $135,000 by the third quarter if it breaches the $108,300 resistance. Ray Wang from Constellation Research anticipates that with a backdrop of falling interest rates and sovereign fund inflows, Bitcoin could hit $150,000 within six months. Bitwise CEO Hunter Horsley points to a year-end target of $200,000, highlighting that currently, 125 publicly traded firms hold BTC, a number expected to multiply with regulatory clarity.
