Why Is Crypto Up Today? – June 4, 2025

Key Takeaways:

In May, many in the crypto community were still hoping that Bitcoin (BTC) and major altcoins like Ethereum (ETH) and Solana (SOL) would continue the rally that began earlier in the spring. But this time, the market took a different turn: momentum faded, and prices moved sideways.

However, analysts believe the fundamental outlook remains strong. June could mark the beginning of a new move. In this report, we look at how BTC, ETH, and SOL performed in May and what to expect in the weeks ahead.

$118K May Be the Next Target for Bitcoin Price

Despite strong expectations, May didn’t deliver a breakout for Bitcoin. The price held above $100,000 but struggled to overcome key resistance levels. Still, market confidence in further growth hasn’t faded.

Kelghe D’Cruz, CEO of Pairs.xyz, told Cryptonews that both technical indicators and macro trends are playing in Bitcoin’s favor:

Bitcoin is holding strong above $100K and just broke through key resistance levels — many analysts now see $118K as the next target. What’s behind the optimism? Institutional inflows, strong ETF demand, and Bitcoin’s growing correlation with tech stocks.

D’Cruz also noted:

June has often been a sideways month historically, but this time feels different. With bullish technicals and macro tailwinds in play, we could see Bitcoin test new highs.

Eneko Knörr, CEO and co-founder of Stabolut, also sees favorable conditions forming:

We’re entering what I’d call a perfect storm for Bitcoin. Banks, long held back by regulatory uncertainty, are finally stepping into crypto to meet growing client demand. At the same time, sovereign entities and major corporations are adding BTC to their balance sheets, further cementing Bitcoin’s legitimacy. This is unlocking a new wave of interest from family offices and long-term institutional players.

Knörr added that the halving effect isn’t over yet and that the market may be at the start of a new bull cycle:

In my view, the “halving effect” is still in motion. The bounce from $60K was just the beginning — we’re likely entering a full-blown bull market with Bitcoin at the helm.

This infographic illustrates the largest Bitcoin ETF outflow since late February 2025. On May 22, net outflows totaled around $616 million, the biggest single-day drop since Feb. 25, when ETFs saw a record $1 billion leave the market.

Ethereum ‘Still Feels Undervalued’ Despite Stable Inflows

While Bitcoin ETFs saw capital exit, Ethereum ETFs held up better. Inflows were weak but remained positive in May, pointing to continued institutional interest.

Eneko Knörr told Cryptonews that ETH remains a top pick among institutions, especially with the rise of real-world asset (RWA) tokenization:

Ethereum, despite this year’s gains, still feels undervalued. It’s the institutional favorite among Layer 1s, and as the real-world asset tokenization trend accelerates, Ethereum is positioning itself as the core infrastructure of that financial evolution.

Prabal Banerjee, CEO of Avail, noted that institutional involvement now goes beyond ETFs and includes infrastructure:

This summer does look like one for the institutional market. I expect the narrative around institutional adoption to evolve from just ETFs to also include infrastructure. We’re already seeing early signs: BlackRock and Citi are experimenting with tokenized funds, while major financial institutions are actively exploring sovereign rollups and high-throughput modular execution layers.

Banerjee emphasized the shift in institutional thinking:

Institutions are no longer asking if they should tokenize assets, but how. From sovereign bonds to money market funds, there’s now a clear pipeline of tokenized products being deployed.

D’Cruz also expects ETH to gain momentum if current conditions hold:

Ethereum looks ready to push past $2,800–$2,900 and potentially break out above $3K, especially as staking increases and the liquid supply tightens. If the bullish momentum continues, ETH could have a strong summer.

Fundamentally, Ethereum continues to strengthen its position. According to data, network revenue in May rose by 162.5%, far outpacing other blockchains. For comparison, Solana’s revenue increased by just 19.3%, reflecting the slowdown in meme coin activity that had previously fueled its growth.

Solana Forms a ‘Cup-and-Handle’ as Altcoin Rotation Looms

Unlike the beginning of the year, May was quieter for Solana. Meme coin hype faded, and growth slowed. However, technical signals remain strong, and analysts see room for a continuation.

Kelghe D’Cruz told Cryptonews that SOL is showing a bullish chart pattern:

Solana’s chart is even more exciting — it’s respecting support and shaping up into a textbook cup-and-handle. Some forecasts are calling for $500 as a mid-range target this year, with a potential stretch to $1,000 if conditions align. The growing buzz around a Solana ETF and continued DeFi traction only add fuel to the fire.

Eneko Knörr pointed out that in classic market cycles, Bitcoin rallies first — followed by altcoins like Solana:

As in every past cycle, Bitcoin moves first, and then we see a rotation into altcoins like Ethereum and Solana. When that happens, Bitcoin dominance will likely drop as ETH and SOL begin to outperform.

Summer Could Belong to Altcoins

Analysts agree that even if June brings volatility, the broader picture is of market maturity and diversification.

Prabal Banerjee noted that a drop in Bitcoin’s market share shouldn’t be seen as weakness:

And Bitcoin, well it is still the most dominant. So even if there is some price fluctuation, it won’t signal weakness. It may probably just be capital movement with a maturation of the market, sort of a shift toward a more diverse set of high-utility assets and architectures purpose-built for the next era of institutional and consumer adoption.

Kelghe D’Cruz added that ETH and SOL could attract more attention in the months ahead:

If this summer plays out like past cycles, we’ll likely see Bitcoin lead — but ETH and SOL may steal the show as we see money rotating into high-utility altcoins.

Whether we’re entering a new altcoin season or not, the signs of growing institutional engagement across the board are hard to ignore. June could be quieter on the surface, but under the hood, the market seems to be warming up again.

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