Bitcoin soars above $110,000 and Ethereum rises above $4,000 in another frenzy of “buying on the edge”

Bitcoin and Ethereum have rallied strongly this week as new capital returns to the crypto market following the US-China tariff shock.

According to , Bitcoin has exceeded $110,000 for the first time since early October, reaching about $111,000 at the time of writing. crypto slate data. The move marked a 4% daily gain and reversed some of the decline that followed President Donald Trump's announcement of new tariffs on imports from China.

Ethereum also broke through the $4,000 barrier for the first time in weeks, rising more than 4% to around $4,045, a level that traders consider to be technically important.

Notably, other major digital assets also joined the market momentum with their own rallies.

According to crypto slate Data, BNB, XRP, Solana, Dogecoin, Tron, and Cardano each rose between 5% and 8%, indicating a broader resurgence rather than a Bitcoin-only rebound.

“Please buy me some dip.”

The current rally may be related to the current “buy on the buy” sentiment that permeates the market.

Notably, on-chain data tracked by blockchain analytics platform Lookonchain shows that over $6 billion of new Tether's USDT and Circle's USDC stablecoins have entered circulation since last week.

Stablecoin issuance is often preceded by new spot purchase activity. In this case, capital appears to be rotating from a cash sideline to dollar-pegged tokens to fund token accumulation.

Sentiment, on the other hand, reflects traditional market trends.

U.S. stock investors bought $3.9 billion in stocks last week, after three consecutive weeks of outflows, according to data from Kovisi Letter citing Bank of America.

Analysts at the firm said net inflows into individual stocks reached $4.1 billion, the fifth highest since 2008 and the biggest week on record for the S&P 500 index to fall more than 1%.

They added:

“This was driven by +$4.4 billion in inflows from institutional investors, the highest level since November 2022. Retail investors bought +$1.1 billion, the second week of purchases in the past six weeks.”

Market remains cautious

Despite the rise, the Bitwise Crypto Sentiment Index still exhibits an overall bearish stance, with its measurements consistent with what analysts call Bitcoin's “high risk, high return.”

However, the asset manager's intraday sentiment model now shows a bullish divergence forming, an early sign of a near-term reversal.

Analysts at Galaxy Research echoed this cautiously optimistic tone, writing that while last week's flash crash “has dealt a significant blow to asset prices,” broader settings “remain constructive.”

They wrote:

“While Bitcoin remains well-positioned as digital gold to capitalize on fundamental doubts about government fiscal and monetary prudence, the rise of tokenization and stablecoins coupled with a very favorable US regulatory outlook should enhance the outlook for other important digital assets such as ETH and SOL.”