Crypto investment products are shattering records as institutional demand surges, but analysts caution the rally may face a sharp reversal. Bitcoin’s dominance continues while Ethereum struggles to match its year-ago performance.
Crypto ETFs saw a massive $3.7 billion in weekly inflows, the second-highest on record, pushing total assets under management to an unprecedented $211 billion. U.S. investors led the charge with $3.7 billion in inflows, while Germany saw $85.7 million in outflows, and Switzerland and Canada posted modest gains of $65.8 million and $17.1 million, respectively.
Bitcoin’s price surged past $121,000, marking a 15.9% monthly gain and more than doubling its value from July 2024. Ethereum, though holding above $3,000, remains 4.6% lower year-over-year despite the launch of U.S. spot ETFs last summer. Analysts note that Bitcoin’s rally is driven by spot market demand rather than leveraged speculation, signaling strong institutional conviction.
Bitfinex analysts highlight that ETF inflows have nearly offset all Bitcoin selling pressure, with balanced funding rates indicating sustainable growth. However, BRN’s Valentin Fournier warns that the current bullish trend could reverse abruptly if buying pressure weakens. “We’re monitoring for signs of inflow fatigue,” he said, emphasizing the need for cautious risk management as the market nears potential profit-taking levels.
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CryptoFeedHub Note: This article is a rewritten summary based on external reporting. Original source: https://decrypt.co/.