The cryptocurrency market saw its total market cap briefly exceed $3.5 trillion this week

Bitcoin (BTC) reached $105,000, and Ethereum (ETH) recorded gains of over 41% within the past week, as broad bullish momentum took hold of digital assets.

Cryptocurrency prices have soared to new highs this week, with Bitcoin (BTC) briefly exceeding the $105,000 mark and Ethereum (ETH) notching gains of over 41% within the past week. The total cryptocurrency market cap also briefly surpassed $3.5 trillion, signaling a notable return of risk appetite across global markets.

As reported by Chain Aналитика, the broader altcoin market, when excluding Bitcoin and Ethereum, has carved out a bullish breakout from a falling wedge and is now pushing toward key Fibonacci resistance.

According to data from TradingView’s Total3 chart, the altcoin market is testing the 0.786 Fib retracement level of $925 billion after breaking above the 0.618 ($894B) and 0.5 ($873B) levels. The Relative Strength Index (RSI) is sitting at 70.30, indicating overheated conditions but suggesting continued bullish pressure.

Moreover, the MACD line has crossed above the signal with a healthy gap and growing histogram bars, confirming bullish momentum across the board.

Crucially, the next major resistance lies at the previous local top of $964 billion, followed by the 1.618 extension target at $1.08 trillion. A breach of this level could cement the current breakout as a full-blown altcoin season.

Macro tailwinds strengthen the case

Singapore-based QCP Capital attributes the recent spike in crypto prices to a series of bullish macro events. A landmark $600 billion US–Saudi Arabia trade deal has softened global tariff expectations, pushing equities and crypto higher.

This is coupled with a cooler-than-expected US CPI print, which has brought anticipation of rate cuts, with two reductions expected in 2025. Even though the Fed remains cautious and data-dependent, risk-on sentiment is dominating investor behavior.

Finally, Coinbase’s upcoming inclusion into the S&P 500 on May 19 will likely fuel further inflows into the crypto space, serving as a catalyst much like Tesla’s S&P inclusion in late 2020.