Bitcoin (BTC) recently surged past the $122,000 mark, setting a fresh all-time high and reigniting speculation that a full-fledged bull market may be underway.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is also experiencing strong upward momentum, trading above $3,060 with rising trading volume and renewed investor confidence.
These developments have energized the broader crypto market, with altcoins showing signs of life and market sentiment turning increasingly bullish.
This post looks into the recent price action of BTC and ETH, the underlying factors fueling this rally, and what it could mean for the crypto ecosystem going forward.
Bitcoin’s breakout above $120,000 is a significant technical milestone.
Earlier in Q2 2025, Bitcoin struggled to break past the $111,000 level, which served as a key psychological and structural resistance.
However, momentum steadily built up, and BTC has now surged past the more critical $120,000 barrier.
The recent move came with high trading volume and solid on-chain metrics, suggesting this rally is driven by strong fundamentals rather than short-term hype.
On-chain data shows a steady increase in new wallet addresses, while the number of long-term holders remains elevated.
Institutional inflows particularly through spot Bitcoin ETFs have also picked up, further validating the upward trend.
According to several technical analysts, if BTC holds above the $120K level, the next resistance zone could lie between $140,000 and $146,000.
Ethereum is also enjoying bullish momentum, trading above $3,060 and registering a weekly gain of over 15%.
A key factor driving ETH’s rally is the resurgence of Layer 2 adoption and renewed interest in decentralized finance (DeFi) platforms.
Part of this momentum can be attributed to the broader sentiment shift triggered by Bitcoin’s strong performance, which is encouraging capital rotation into large-cap assets like ETH.
Trading volume for ETH has doubled in the past week, and the Ethereum network is seeing increased activity from both retail and institutional participants.
Staking participation has climbed to record highs, thanks in part to the recent Pectra upgrade, while Ethereum’s supply remains deflationary, both of which strengthen the case for a sustained upward trend.
With BTC and ETH both gaining ground, attention is now shifting toward other segments of the market especially altcoins.
Historically, altcoins tend to lag behind Bitcoin and Ethereum during the initial phase of a bull market.
However, the current rally is already spreading to other assets. BNB, SOL, XRP, AVAX, and several meme coins, PENGU, DOGE have shown significant intraday gains, suggesting that capital is rotating into riskier assets.
Altseason indicators, such as the Altcoin Season Index,although significantly still low, have started to move upward from the neutral zone, indicating a growing appetite for altcoin exposure among traders.
While it is too early to confirm a full-scale altseason, early signs suggest that the broader market is gearing up for one.
This growing interest in altcoins is a reflection of shifting investor sentiment, which has become notably more optimistic in recent weeks.
Investor sentiment is rapidly shifting toward optimism.
The Fear and Greed Index, a widely used sentiment gauge, is currently in the “Greed” zone, reflecting increased confidence among market participants.
Social media activity related to crypto has surged, and engagement on platforms like Twitter is on the rise.
Additionally, recent political developments in the U.S. are contributing to the bullish mood.
President Donald Trump’s pro-crypto statements and ongoing congressional discussions about clearer regulatory frameworks have reduced some of the policy uncertainty that weighed on the market earlier this year.
The return of optimism is also drawing new capital into the market, reinforcing price movements and boosting network activity.
There is clear evidence that fresh capital is entering the crypto space.
Spot ETFs for both BTC and ETH are seeing consistent inflows, while centralized exchanges report growing user activity.
Spot ETFs for both BTC and ETH are seeing consistent inflows, while centralized exchanges report growing user activity.
On-chain data shows an uptick in the creation of new addresses and wallet activity, further supporting the notion of new entrants coming into the market.
Traditional finance (TradFi) firms are also increasing their exposure to digital assets.
Several publicly traded companies have announced plans or allocated more of their treasury into BTC, further validating the asset class in the eyes of conservative investors.
As capital continues to flow in and institutional adoption grows, the market appears well-positioned for further expansion.
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The current market conditions suggest that we may be in the early stages of a new bull market.
Bitcoin breaking through $120K and Ethereum’s strong momentum above $3,000 are supported by favourable technicals, robust on-chain data, and improving macro sentiment.
While short-term corrections are always possible, the underlying fundamentals point to a healthy and sustainable market environment.
Investors should remain cautious but prepared. Diversification, risk management, and a long-term outlook remain essential strategies for navigating the volatile crypto landscape.
As always, doing your own research and staying informed will be key to making smart investment decisions in this evolving market.
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The post Bitcoin Surges Past $122K: Are We in a New Bull Market? appeared first on NIGERIA BITCOIN COMMUNITY.
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