As crypto markets gear up for a potential breakout, a top analyst from Bitfinex believes Bitcoin (BTC) and Ethereum (ETH) may be on the verge of another significant rally. According to Jag Kooner, Head of Derivatives at Bitfinex, a favorable macroeconomic landscape could set the stage for digital assets to climb even higher in the coming weeks.
Macro Conditions Are Lining Up
Kooner points to the broader macroeconomic environment as the key driver behind this possible move. In a note shared on May 28, he highlighted how the Federal Reserve’s next steps—particularly around interest rates and inflation—are crucial to crypto’s momentum.
With recent talk of tariffs possibly sparking inflation, the Fed is expected to maintain current interest rate levels. However, traders are especially eyeing the Core Personal Consumption Expenditures (Core PCE) data, set to be released this Friday.
“The Core PCE data will be the most binary macro event. If it comes in lower than 2.6% year-over-year, we could see a drop in real yields and a weaker dollar. That would likely drive capital back into crypto,” said Kooner.
Institutional Money Flows Are Growing
The shift isn’t just about macro data. Kooner revealed that institutional investors are pouring money into crypto, with $1 billion in net inflows into Bitcoin and Ethereum ETFs during the week ending May 25.
This surge of institutional demand highlights growing confidence in the long-term value of digital assets—especially as a hedge against dollar weakness and inflationary concerns.
Ethereum May Be Leading the Charge
While Bitcoin remains a pillar of strength, Ethereum could be gearing up to take the lead in the next leg of the bull cycle.
“Ethereum is up 6% against BTC from recent lows, and this move is being driven by institutional—not retail—interest,” Kooner explained.
He described the current market phase as “Phase 3” of the ongoing crypto bull market—where Bitcoin stabilizes, Ethereum gains momentum, and capital begins to rotate into select altcoins.
What’s Next for Traders?
The Federal Reserve’s guidance and the upcoming PCE data will likely determine whether this rally takes off or gets delayed. For now, Kooner’s message to traders is clear:
“Crypto isn’t overbought—it’s underallocated. Macro conditions will simply decide how fast capital flows into the space.”
Key Takeaways:
- Bitcoin and Ethereum may rally further if macro conditions remain favorable.
- Traders are closely watching Friday’s Core PCE inflation data.
- Institutional investors are driving momentum, not retail buyers.
- Ethereum is showing relative strength against Bitcoin.
- Altcoins could follow if ETH continues its upward trend.
With the right mix of economic signals and investor interest, crypto markets might be on the cusp of their next big move.
