Crypto Markets Cool Off, but Coinbase Says Rally Built on Solid Fundamentals
The recent crypto rally slowed on Friday, with traders taking profits after a week of optimism fueled by legislative momentum and institutional interest. Despite a mild pullback, analysts maintain that market conditions remain structurally strong.
Bitcoin (BTC) fell to around $117,500 during the U.S. session, down from highs above $120,000, leaving it nearly unchanged over the past week despite Monday’s brief surge to $124,000.
Ethereum (ETH) climbed to nearly $3,700 before retreating to $3,550, still up 4.5% on the day and over 20% for the week. XRP touched a new all-time high at $3.60 early Friday before pulling back to $3.40, maintaining a 35% weekly gain.
The CoinDesk 20 Index, tracking the largest digital assets, hit a record 4,133 before retreating 3.7%.
Altcoin Rotation Gains Momentum
As Bitcoin consolidates, capital is increasingly rotating into altcoins. ETH and XRP led gains, while tokens like Dogecoin (DOGE), Sui (SUI), Cardano (ADA), Avalanche (AVAX), and Uniswap (UNI) each posted double-digit weekly advances.
Analysts describe the trend as the early phase of an altcoin cycle, with investors broadening their exposure beyond Bitcoin.
Policy Developments Support Bullish Sentiment
Earlier optimism stemmed from expectations that President Trump will soon sign the GENIUS Act into law — a landmark federal crypto regulation focused on stablecoins. The bill is seen as a significant step toward legal clarity for digital assets in the U.S.
Meanwhile, University of Michigan survey data showed consumer sentiment remains weak, down 16% from December, though inflation expectations are easing slightly. One-year inflation forecasts fell to 4.4%, and long-run expectations dropped to 3.6%.
Coinbase: Market Structure Still Healthy
Despite the pause in momentum, Coinbase analysts led by David Duong say the rally is not driven by speculation. Their latest report points to strong fundamentals, including ETF flows, institutional demand, and moderate derivatives activity.
“This rally is supported by steady accumulation, not euphoric speculation,” the report stated. “While short-term pullbacks are possible, indicators suggest the broader uptrend is still in early stages.”
