The rally, analysts said, appears driven by spot accumulation and improving risk appetite, with on-chain data showing liquidations of short positions as Bitcoin moved above key resistance levels
Overall, muted capital inflows, analysts said, are likely to keep ETH range-bound, while Bitcoin's relative strength continues to support broader sentiment, though there is no clear breakout signal
After testing the $94,000-$95,000 zone earlier in the week, BTC retraced and briefly dipped below $90,000 before stabilising near the mid-$90,000 levels
Until Bitcoin resolves its volatility squeeze and macro liquidity becomes less restrictive, altcoin movements, analysts believe, are likely to remain rotational and tactical,
As digital assets continue to operate in a tightly regulated environment, the sector, analysts said, has displayed significant resilience, innovation, and growing integration into the broader system
While volatility is expected to persist, it may be less extreme than in previous cycles, with institutional adoption and infrastructure development paving the way for a more stable market
The flagship digital asset now accounts for 8.1 per cent of total holdings, highlighting renewed investor appetite for stability in a market often defined by volatility
The positive sentiment spilled over into the altcoin space, with Solana (SOL), Render (RENDER), XRP (XRP), Cardano (ADA), Pepe (PEPE) and Sui (SUI) staging steady recoveries on the charts
The rebound followed the Federal Reserve's decision to halt its Quantitative Tightening (QT) program and inject liquidity into the markets, boosting short-term financial stability.
Despite these headwinds, analysts believe macro liquidity from the Fed pivot could act as a stabiliser if capital rotation resumes toward large-cap cryptocurrencies
Calling volatility "vitality," Saylor argued that Bitcoin's sharp price swings are essential to its long-term performance and the opportunity it creates for investors