Ether (ETH) at a crossroads
The crypto market showed an impressive recovery this week. After a brief correction, the overall market value managed to rebound quickly. Ethereum, in particular, stood out with a strong price increase reaching its highest point since January. The momentum puts ETH at an exciting technical crossroads. More on that in this edition of Bitvavo Market News.
Market update
Last week, most coins experienced a brief correction. The total market value of the crypto market fell 6% in three days and then recovered to its starting point in the following four days. Corrections like this reveal the difference between the market leaders and the laggards: strong coins recover quickly and are now well above last week's prices, while weaker coins still trail behind.
Ether is one of the clear leaders. In the first three weeks of July, the price of ETH rose 60% from €2,050 to €3,300, an impressive rally. The correction that followed was mild and the rebound came quickly. As of now, it is trading at €3,360, its highest level since January.
That puts ether at an important crossroads. This is especially clear when you look at the chart in US dollars. For the fourth time in 18 months, we are approaching the zone between $4,000 and $4,100. A breakout above that range could pave the way to the all-time high of $4,800, set in 2021. Could the ETH/BTC ratio return to 2021 and 2022 levels? If so, at bitcoin's current price, that would put the ether price between $7,200 and $9,600.
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The big investors have arrived
When BlackRock filed its application in June 2023 for a spot bitcoin ETF, insiders knew this was no longer hype, this was crypto maturity. Not because it was the first application of its kind (far from it), but because it was BlackRock, the world's largest asset manager, with an almost spotless track record at the SEC. From then on, bitcoin was no longer considered a toy of retail investors, but a serious asset in the making.
Fast forward to today: a new report from U.S. law firm Barnes & Thornburg confirms that institutional investors are no longer hesitant, but are becoming fully involved. Of 121 professionals surveyed, including fund managers, investment banks, and family offices, 85% said they plan to invest (or invest more) in crypto in 2025. And 84% said they're optimistic about the sector's future.
So what's driving them? Unlike retail investors, they don't think in market cycles, halvings, or other hype narratives. For them, it's all about clear regulation, mature financial products, and scalable infrastructure. Only when the foundations are solid, such as custody, valuation standards, and exit liquidity, are they ready to commit.
Barnes & Thornburg is not a crypto promoter. The law firm advises annually more than a hundred funds, managing billions in assets. Their report serves as a reliable thermometer of what's going on among serious institutional allocators. One striking takeaway is that economic uncertainty is not a primary reason for investing in crypto. Among this type of investor, Bitcoin has yet to build its reputation as a safe haven.
In short, the conditions for institutional investment in Bitcoin are now largely in place. With products like ETFs, more cooperative regulators, and clearer rules, crypto is becoming a structural part of investment portfolios.
In other news
The Ether Machine has raised $1.5 billion to invest in ether. The company is going public via a SPAC deal and will immediately add more than 400,000 ETH to its balance sheet. The deal should be completed in the fourth quarter of this year. Among the backers are big names like Kraken and Pantera Capital. Frontman Andrew Keys himself is contributing just under 170,000 ETH. Keys is the co-founder of Consensys Capital.
Trump Media now holds $2 billion in bitcoin. That puts the majority of the company's cash in BTC. According to CEO Devin Nunes, Bitcoin is a tool for financial freedom and a safeguard against financial censorship. The move instantly makes Trump Media one of the largest corporate bitcoin owners, and gives the Truth Social ecosystem a distinctive cryptocurrency identity. Still, the decision has sparked criticism, with some warning of potential conflicts of interest.
BlackRocks ether ETF has surpassed the $10 billion mark. The fund, just launched in March, is the third fastest ETF ever to reach this milestone. In just ten days, ETHA rose from $5 to $10 billion, dubbed by some the "God candle" of institutional inflows. According to ETF.com analyst Sumit Roy, growing optimism around stablecoins and treasury companies is the main driver behind ether's advance.
Goldman Sachs and BNY Mellon plan to tokenize money market funds. Through a new platform, fund shares will be issued as digital tokens on Goldman's blockchain, with real-time settlement and use as collateral as key features. Unlike some competitors, Goldman is taking a more closed stance: upgrading existing infrastructure without relying on public blockchains. Globally, more than $7 trillion sits in money market funds.
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.