Key Points
- The total crypto market cap is gradually stabilizing with institutional inflows playing a key role.
- Bitcoin and Ethereum ETF inflows have emerged as a significant trendsetter in the crypto market.
The total crypto market cap is showing signs of stability after bouncing back to $3.08 trillion from a 24-hour low at $2.81 trillion.
Market analysts are suggesting a potential bottom, with institutional flows as the key deciding factor.
The Impact of Bitcoin and Ethereum ETF Inflows
Bitcoin and Ethereum ETF inflows are becoming increasingly influential in the crypto market.
A surge in inflows could potentially trigger a V-shaped reversal in the broader market.
However, if fear infiltrates institutions, it could lead to a significant dump, potentially extending the market crash.
In January 2025, the Bitcoin (BTC) price experienced a 9.67% increase, marking a significant recovery from a near $93,000 dip in late December.
During this time, US spot Bitcoin ETFs acquired approximately 45.1K BTC.
This was slightly less than the 45.6K BTC inflows in December, indicating that hype played a role in both the inflows and the BTC price in January.
BlackRock was the largest Bitcoin buyer, accumulating 26.1K BTC, while Fidelity secured the second spot with 12.4K BTC acquired in January 2025.
However, Grayscale continued to experience outflows, recording negative 4K BTC. Other funds, including Bitwise and ARK, purchased 3.1K BTC.
Ethereum ETF Inflows Amid Market Uncertainty
Compared to Bitcoin, Ethereum ETFs had a significant run over the past few months.
Ethereum ETF inflows stood at $81.69 million, marking a significant slowdown compared to the $2,103 million inflows in December 2024.
Despite these significant inflows, the Ethereum (ETH) price recorded a drop of 10.15% in December 2024.
While institutional pools seem to have a lower impact on a larger timeframe, institutional pushes still remain key drivers in Bitcoin and Ethereum price trends.
Institutions are likely to maintain the ongoing trend, ignoring short-term volatility due to the surge in tariffs.
Bitcoin is currently at a crucial level. According to a recent tweet by independent crypto analyst, Martinez Ali, Bitcoin is testing one of its most crucial levels at $92,180.
Using the MVRV Extreme Deviation price band, Martinez highlights crucial support from this band. If the BTC price breaks below this level, a potential downfall to $74,700 will likely arise on bearish radars.
Bitcoin is currently back at $98,540 marking an intraday gain of 0.76%.
As the BTC price marks a significant lower price rejection, the Bitcoin and Ethereum ETFs will play a pivotal role.
A surge in ETF purchases may fuel a V-shaped recovery as BTC price bounces off from its key support at $92,180.
