Why are Bitcoin and altcoins like Solana, BNB, XRP going up today? (13/8)

Bitcoin and most altcoins surged on August 13 as the Crypto Fear and Greed Index turned green and expectations for a Federal Reserve interest rate cut rose following the July inflation data.

Bitcoin (BTC) crossed the important resistance point at $122,000, while Ethereum (ETH) soared above $4,700. Other top-perfoming tokens were Solana (SOL), Binance Coin (BNB), and Ripple (XRP).

Bitcoin and altcoins jump as Crypto Fear and Greed Index rise

The ongoing crypto rally coincided with broader risk-on sentiment among market participants. The Crypto Fear and Greed Index advanced to the “greed” zone at 63.

Similarly, the broader Fear and Greed Index tracked by CNN Money climbed to 66, helping explain why major equity indices such as the S&P 500 and the Nasdaq 100 soared to a record high.

The optimism is being driven by expectations that the Federal Reserve will cut interest rates in September.

In a statement, Treasury Secretary Scott Bessent urged the Fed to deliver a 0.50% cut next month, while President Donald Trump has called for a 300 basis point reduction.

The odds of a rate cut increased after July’s nonfarm payroll and consumer inflation reports. Jobs data showed hiring slowed, with the unemployment rate rising to 4.2%.

A report on Tuesday showed that the US inflation remained at 2.7% in July, even as the core CPI rose to 3.1%. Most of the price hikes were in the services industry.

Crypto going up amid institutional demand

Bitcoin and top altcoins are going up amid rising demand among institutional investors. Spot Ethereum ETFs have added over $1.7 billion in inflows this week, while treasury companies like SharpLink and BitMine are continuing their accumulation. In a note to crypto.news, James Toledano, the COO at Unity Wallet said:

“Ethereum is within about 4% of its ATH, and continued ETF inflows and institutional demand could plausibly push it to new highs. I do see it reaching and possibly surpassing the ATH.”

Spot Bitcoin ETFs have also seen strong inflows, bringing cumulative assets to $54 billion. Derivatives-based ETFs like SSL and XXRP have continued to add assets, signaling further demand.

Cryptocurrency prices are also driven by expectations that the Securities and Exchange Commission will approve multiple exchange-traded funds tied to Solana, Cardano, Hedera Hashgraph, and Dogecoin.

Crypto bull run faces risks ahead

While the crypto bull run may continue, some analysts see risks to the ongoing surge. Toledano warned:

“There’s reason for caution as always: derivatives data show traders remain guarded rather than euphoric, and macroeconomic or recession fears could dampen momentum.”

BTC price chart | Source: crypto.news

Another potential risk is technical: Bitcoin is forming a possible double-top pattern at $123,000 with a neckline at $112,000. A confirmed double-top could trigger a reversal, which would likely lead to deeper declines across altcoins that tend to follow Bitcoin’s lead.