- Digital asset inflows surged to $3.3 billion last week, driven by strong interest in Bitcoin ETFs and altcoins like Ethereum and Cardano.
- Positive market sentiment, supported by easing US-EU trade tensions and economic concerns, is fueling renewed bullish momentum across the crypto space.
Digital asset markets are showing fresh signs of strength, with inflows hitting a hefty $3.3 billion last week. This surge pushes year-to-date (YTD) inflows to an impressive $10.8 billion, reflecting growing confidence among investors amid evolving global economic dynamics.
Bitcoin ETFs Lead the Charge
Spot Bitcoin Exchange-Traded Funds (ETFs) dominated last week’s inflows, attracting around $2.75 billion—the third-largest weekly inflow ever recorded. Bitcoin itself reclaimed momentum after a weekend dip triggered by trade tensions between the US and EU. Positive developments, including a delay in proposed tariffs, helped Bitcoin rebound above $109,600, with an intraday high touching $110,228.
Also read: Why Ripple’s XRP Is Set to Dominate Global Finance with ISO 20022 Adoption
Altcoins Rally Alongside Bitcoin
Ethereum, Solana, and Cardano are not just following Bitcoin’s lead—they’re fueling a broader altcoin resurgence. Ethereum-related products pulled in $326 million in inflows, the strongest boost in 15 weeks, buoyed by optimism around recent upgrades. Cardano also posted solid gains, supported by technical buy signals, as investors potentially rotate capital from Bitcoin to high-potential altcoins amid a Bitcoin dominance consolidation near 64%.
Macro Factors Driving Crypto Interest
The crypto rally aligns with shifting macroeconomic conditions. Moody’s recent downgrade of the US credit rating sparked worries over government debt sustainability, pushing treasury yields higher and prompting investors to diversify into digital assets. This shift underscores Bitcoin’s growing role as a “digital gold” hedge amid financial uncertainty.
Market Snapshot and Outlook
The total cryptocurrency market capitalization edged up 0.3% to $3.58 trillion. Bitcoin’s technical setup remains bullish, supported by rising moving averages and strong market sentiment aiming to break past all-time highs. Still, traders watch key support levels near $106,600 for signs of potential pullbacks.
Meanwhile, altcoins like Ethereum and Cardano appear primed to extend their rally, with positive momentum indicators suggesting further upside potential in the near term.
With institutional and retail inflows surging, easing geopolitical tensions, and technical charts favoring bulls, the digital asset space looks set for renewed upward momentum. Bitcoin’s leadership, combined with promising altcoin performance, could sustain a vibrant and diverse crypto market as investors seek growth and diversification amid economic uncertainties.
