Crypto, Equities Push Higher as Risk Sentiment Rebounds; BTC Stuck in Tight Range

Risk appetite returned to global markets on Friday, driving gains across crypto, equities, and gold, even as oil prices slid toward their worst weekly performance since June.

The upbeat sentiment followed a diplomatic breakthrough between the U.S. and Japan on trade, with Tokyo’s chief negotiator Hiroshi Suzuki confirming the removal of stacked tariffs and a concurrent reduction in auto duties. This lifted Asian equities, with the MSCI Asia Pacific Index gaining 0.5% for its fifth straight daily advance, and Japan’s Nikkei 225 rallying 2.3%.

In the digital assets space, the total crypto market capitalization rose 3% over the past 24 hours to $3.76 trillion, led by a surge in altcoins. Ether (ETH) jumped 7.3% to $3,935, XRP (XRP) soared 12% to $3.36, Solana (SOL) climbed 4.7% to $175.19, and Dogecoin (DOGE) advanced 8.8% to $0.22. Bitcoin (BTC), however, lagged with a modest 1.9% rise to $116,781 on $38.8 billion in 24-hour trading volume.

FxPro chief market analyst Alex Kuptsikevich noted the rally mirrors “growing appetite in the stock markets,” but cautioned that bitcoin remains “trapped in a narrow range” between $112,000 — defined by the 50-day moving average and recent support — and $120,000, which aligns with psychological resistance and July’s highs.

Meanwhile, on-chain metrics indicate waning momentum for BTC. According to Glassnode, sentiment has shifted from “euphoria” to “cooling off,” with spot Bitcoin ETF inflows down nearly 25%, reduced network activity, and declining transaction fees.

In the options market, positioning suggests traders are hedging against further downside. Open interest reflects increased protection below the $100,000 level into late August, signaling expectations of continued summer weakness and volatility containment.

Oil, in contrast, is under pressure, with Brent and WTI prices poised for a weekly drop exceeding 4%. Rising U.S. inventories and sluggish Chinese import data have weighed on the market, according to Bloomberg.