Crypto Rebounds with ETF Inflows Amid Easing Macro Tensions

Bitcoin and Ethereum staged a recovery this week, climbing from last week’s sharp lows as investor interest in ETFs returned. BTC touched $71,000, while ETH rebounded to $2,150, sparking optimism that the recent selloff may have marked a near-term bottom. This is after Bitcoin faced further downside in the weeks or months ahead, with prices potentially sliding toward long-term support levels that have historically marked cycle bottoms

Market participants, however, remain cautious, with trading likely to stay range-bound as they await clearer catalysts.

ETF flows support market momentum

Institutional demand has shown signs of returning, driven by inflows into spot ETFs. According to SoSoValue, spot BTC ETFs recorded a net inflow of $145 million yesterday, building on Friday’s $371 million inflow following three days of outflows. Ethereum ETFs also reversed course, posting $57 million in net inflows after a short streak of withdrawals. Single-name accumulation, including continued ETH purchases by BitMine, has added further support, stabilizing Ethereum’s narrative after a challenging week.

Macro developments and market sentiment

Geopolitical tensions between the U.S. and Iran appear to have eased following last Friday’s talks. At the same time, weaker-than-expected job data has raised expectations of a potential March rate cut, boosting broader risk appetite. Key upcoming macro events, including today’s NFP report and Friday’s CPI release, could influence Fed rate expectations and market leverage strategies. On the domestic trading front, the Coinbase BTC discount has narrowed from roughly 20 basis points to 9, signalling reduced U.S.-led spot-selling pressure. Despite these improvements, sentiment remains fragile, with the Crypto Fear & Greed Index at just 9, highlighting lingering caution among investors.

With implied volatility still elevated and macro risks looming, traders are advised to approach the rebound with caution and use disciplined hedging strategies. BTC/ETH flows show little rotation between the majors, reflecting steady cross-asset positioning. While optimism is returning, the market’s recovery remains tentative and sensitive to both macro and crypto-specific developments.

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