Bitcoin Retreats to Sub-$118K; Ethereum, XRP Lose Steam, Though Bull Trend Intact, Coinbase Notes

Crypto Rally Pauses, but Fundamentals Remain Strong, Says Coinbase

Cryptocurrencies took a breather on Friday after a week-long surge, with traders locking in profits amid optimism over U.S. regulatory progress and growing institutional adoption. Still, analysts at Coinbase say the rally is far from over.

Bitcoin (BTC) slipped below $118,000 during U.S. trading hours after reaching above $120,000 earlier in the week. The flagship crypto is now flat on the week, despite Monday’s spike to nearly $124,000.

Meanwhile, Ethereum (ETH) briefly neared its 2025 high around $3,700 before pulling back to $3,550, still up over 4.5% on the day and 20% for the week. XRP hit a new all-time high of $3.60 Friday morning before retracing to $3.40, posting a 4% daily gain and a 35% surge on the week.

The CoinDesk 20 Index, a broad measure of major crypto assets, hit an all-time high of 4,133 before falling 3.7% from that peak.

Altcoins Outperform as Rotation Gains Steam

With Bitcoin consolidating, traders have increasingly turned to altcoins. ETH, XRP, Dogecoin (DOGE), Sui (SUI), Cardano (ADA), Avalanche (AVAX), and Uniswap (UNI) all logged double-digit weekly gains, highlighting a broadening of the rally.

The shift is seen as an early-stage rotation into high-beta crypto assets, as capital flows extend beyond BTC and ETH.

Legislative Progress Adds Fuel

Optimism was amplified this week by expectations that President Trump will soon sign the GENIUS Act, a stablecoin-focused bill that would mark the first major federal crypto legislation in the U.S.

Macro data from the University of Michigan’s July survey showed consumer sentiment remains weak — down 16% from December — although inflation expectations moderated slightly. One-year inflation expectations fell to 4.4% from 5%, while five-year outlooks declined to 3.6% from 4%.

Coinbase: No Signs of Overheating Yet

According to Coinbase’s head of research David Duong, current price action is supported by structural tailwinds — not speculative mania.

“The rally is driven by steady accumulation, healthy derivatives positioning, and demand from ETFs and treasury managers,” Duong wrote. “There’s room for Bitcoin to extend its gains. While pullbacks are natural, we don’t see evidence of late-cycle euphoria.”