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Ethereum Outperforms Bitcoin as Crypto Market Closes a Volatile Week in Positive Territory

The cryptocurrency market ended the week with modest gains despite navigating a series of macroeconomic and geopolitical challenges. While both Bitcoin and Ethereum finished higher compared to the start of the week, Ethereum once again emerged as the stronger performer, demonstrating greater resilience amid fluctuating market sentiment.

Bitcoin closed the week near $63,925, gaining approximately 2.6% from its opening price on July 13. Ethereum delivered an even stronger performance, rising around 3.7% over the same period to trade near $1,842.

The week began under pressure as renewed tensions between the United States and Iran pushed global oil prices higher, reviving concerns that inflation could remain elevated for longer. The increase in geopolitical uncertainty reduced investor appetite for risk assets, causing Bitcoin to briefly fall below $62,000 while Ethereum touched weekly lows near $1,750.

Market sentiment improved significantly after the release of softer-than-expected U.S. inflation data. The report fueled optimism that the Federal Reserve may avoid additional interest rate hikes in the near term, triggering a sharp recovery across the crypto market.

Bitcoin rallied above $65,000 and reached a weekly high near $65,500, while Ethereum climbed even more aggressively, approaching the $1,950 level for the first time in several weeks. The rally reflected renewed confidence as investors returned to digital assets following encouraging macroeconomic data.

However, the recovery proved short-lived. During the second half of the week, profit-taking emerged after the strong rally, while fresh geopolitical developments once again weighed on investor sentiment. Bitcoin gradually retreated toward the $63,000 range, and Ethereum gave back part of its gains after encountering resistance between approximately $1,910 and $1,940.

Institutional activity also remained mixed throughout the week. U.S. spot Bitcoin exchange-traded funds (ETFs) experienced significant outflows early in the week before recording several consecutive sessions of positive inflows. Although the renewed institutional demand provided some support for prices, it was not enough to completely offset broader market uncertainty.

By the end of the week, the total cryptocurrency market capitalization had declined to approximately $2.18 trillion as several major altcoins posted larger losses than Bitcoin and Ethereum.

Despite the volatility, Ethereum's relative strength stood out as one of the week's most notable developments. Its ability to outperform Bitcoin suggests that some investors are selectively increasing exposure to assets they believe could lead the next stage of the market recovery.

Looking ahead, traders will continue monitoring geopolitical developments, Federal Reserve policy expectations, inflation data, and ETF flows. These factors are expected to remain the primary drivers of cryptocurrency prices in the weeks ahead, with Bitcoin facing resistance near $65,500 while Ethereum's ability to maintain support above the $1,800 region may provide important clues about the market's next direction.

Disclaimer: This article is for informational and educational purposes only and should not be considered financial or investment advice. Cryptocurrency markets are highly volatile and involve significant risk. Always conduct your own research (DYOR) and consult a qualified financial advisor before making any investment decisions.