Ether Nears $2.7K, Dogecoin Zooms 9% as Crypto Market Remains Cheery

Ether (ETH) and Dogecoin (DOGE) surged on Wednesday, each climbing 9% in the past 24 hours. This extended a bullish trend that has seen both cryptocurrencies experience double-digit gains over the past week.

The broader cryptocurrency market also saw modest gains, with total market capitalization increasing by 1.7% according to CoinGecko. Bitcoin (BTC) traded near $103,700 during Asian morning hours.

Ethereum traded above $2,600, while Dogecoin hovered around $0.24. XRP, BNB, Cardano's ADA, and Solana's SOL all saw gains ranging from 3% to 5%.

Despite the widespread gains in altcoins, crypto traders are becoming increasingly cautious, anticipating potential profit-taking in the near future. A strengthening dollar and renewed trade tensions are tempering market momentum, even as Bitcoin approaches record highs.

"The strengthening dollar, fueled by news of tariffs, has naturally dampened cryptocurrency prices," explained Alex Kuptsikevich, chief market analyst at FxPro, in an email to CoinDesk. "This effect is amplified by Bitcoin's proximity to all-time highs, encouraging short-term profit-taking after its recent rally."

As global markets shift from protectionist policies towards cautious optimism, Bitcoin remains in a state of flux. The asset is caught between competing narratives, according to some traders.

"BTC is caught in a tug-of-war between its 'digital gold' identity and its function as a risk-on asset," noted traders at Singapore-based QCP Capital in a market report. "This tension obscures its directional momentum. As the macro narrative shifts from protectionism towards renewed trade optimism, BTC might remain range-bound."

Despite this uncertainty, market sentiment remains strong. The Fear & Greed Index has remained above 70 for four consecutive days – a "greed" level typically associated with sustained bullish momentum in the short term.

"Bitcoin demonstrated its unpredictable nature on Monday," Kuptsikevich added. "However, with continued positive sentiment, price action around $105 warrants close attention. Will we see an acceleration or another setback? The answer will shape the coming days."

Elsewhere, CoinShares' latest fund flow data reveals $882 million in institutional inflows last week – the third consecutive week of strong buying. BTC led with $867 million in inflows, while ETH saw just over $1.8 million, despite its strong price performance. Interestingly, Solana (SOL) experienced $3.4 million in outflows, even as traders acquired $200 call options expiring in late June, as previously reported.