Look at what's been happening in the market these days. People are much more optimistic about the possibility of an agreement between the US and Iran, and that’s pushing risk assets higher. The S&P 500 and Nasdaq hit all-time highs, and when the stock market is like this, we see capital starting to migrate into crypto.

Bitcoin remains somewhat sideways around $77.73K, down 0.55% in the last 24 hours. It’s far from the peak of $76K that we’ve been observing, but what’s really interesting is what’s happening with altcoins. Bitcoin’s dominance has decreased, and altcoin trading volume is at its highest in three months. This means capital is really starting to shift.

Speaking of altcoins, the movement is quite diversified. The meme sector had a strong rally a few weeks ago, with tokens like TURBO, ORDI, NEIRO, and PNUT rising nearly 20% in a short period. Now we’re seeing a natural correction — TURBO fell 3.95% in the last 24 hours, ORDI dropped 10.64%, NEIRO -6.43%. It’s the normal market cycle.

But there’s something even more interesting happening. ENJ experienced a short squeeze that caused it to rise 50% in one day, although now it’s down 2.90%. BIO, a decentralized science project, had an explosive move of 96% in a single day and is now up 1.25%. This shows that the rotation into small caps has intensified quite a bit.

On the governance front, WLFI is generating quite a bit of controversy. They proposed locking 62.2 billion tokens for at least 2 years, with the possibility of burning up to 4.5 billion permanently. It’s a very aggressive deflationary move.

There’s one detail I can’t ignore: Tether is very active in the market. It participated in a funding round of $134 million for SDEV, accelerating the adoption of stablecoin infrastructure. When you see USDT moving like this in strategic investments, it’s clear the market is becoming more professional.

On the macro side, the Fed’s Beige Book showed continued economic growth, but with notable increases in energy costs. Pakistan lifted the ban on virtual assets, formally integrating licensed VASPs into the banking system — this is important for global expansion.

The Fear and Greed Index is at 23, indicating extreme fear still. But with this risk appetite starting to expand, we might be close to a turning point. Bitwise launched a spot ETF for Avalanche and plans to stake its positions in AVAX, which is a sign of institutional confidence in the asset.

For this week, keep an eye on the unlocking of ARB ( 14.16%, about $13.86 million ), the Senate hearings on Warsh’s nomination to the Fed, and developments in the US-Iran conflict. These macro catalysts could be what’s missing for Bitcoin to make that breakout it’s been lacking.