Crypto’s Bouncing Back on ETF Money, But Don’t Pop the Champagne Yet 🥶
Crypto had a rough week but is fighting back. $BTC climbed to around $71,000 and $ETH hit $2,150 after last week’s lows. A lot of people are now hoping that dip was the bottom for this cycle (at least short-term).
What’s helping? Institutional money is flowing back in. Bitcoin ETFs pulled in $145 million yesterday after a huge $371 million on Friday — that’s the first positive streak in a while. Ethereum ETFs also turned green with $57 million in, and even Tom Lee’s BitMine is buying more ETH to steady the ship.
On the macro side, US-Iran tensions cooled a bit, and weak job data has traders betting on a possible March rate cut from the Fed. That’s generally bullish for risky assets like crypto. The Coinbase premium/discount also narrowed, showing less panic selling from US buyers.
But it’s not all sunshine. Today’s NFP jobs number and Friday’s #CPI inflation print could totally shift the mood and Fed expectations. The Crypto Fear & Greed Index is still at a miserable 9 (extreme fear), so sentiment is fragile. Volatility is down from last week’s spike but still high, and the BTC/ETH ratio isn’t really moving — no big rotation happening.
I mean, this is more like a relief rally more than a full-blown reversal. The ETF inflows are a good sign that big players aren’t totally running away, and the macro tailwinds are helpful. But calling “bottom is in” right now is risky — the market’s walking on thin ice. With major data drops this week, I’d stay humble: size small, keep some hedges or cash on the side, and don’t go all-in on the hopium. Crypto can fake us out super easily. Better to watch how it reacts to the news than chase the bounce blindly.
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