Bitcoin, Ethereum Rebound on ETF Inflows Amid Economic Data Watch

After a period of intense selling pressure that drove Bitcoin to around $60,000—its lowest level since before the November 2024 U.S. elections—the market found a footing. According to digital asset trading firm QCP, spot Bitcoin ETFs recorded $145 million in net inflows yesterday, building on Friday’s $371 million. Similarly, spot Ethereum ETFs reversed a three-day outflow streak with $57 million in net inflows. This influx of capital propelled Bitcoin to $71,000 and Ethereum to $2,150, renewing speculation that a local price floor may have been established.

The shift in ETF sentiment provided a crucial counterweight to recent bearish momentum. QCP market watchers noted a concurrent moderation in U.S.-led selling, signaled by the Coinbase BTC discount narrowing from approximately 20 basis points to 9 basis points. Despite this positive flow data, the broader market sentiment remains fragile. The Crypto Fear & Greed Index is entrenched at 9, deep in ‘extreme fear’ territory, with QCP describing current conditions as ‘thin ice that happens to be holding.’

Beneath the surface of the price rebound, on-chain metrics suggest market participants are bracing for continued turbulence. CryptoQuant contributor CryptoOnchain reported that on February 6, over 7,000 BTC moved from Binance to other spot exchanges, marking the second-highest daily volume in the past year. More tellingly, the seven-day moving average of flows from Binance to derivative exchanges spiked to 3,200 BTC, the highest level since January 2024.

Analysts interpret this migration of significant capital to derivative platforms as a clear sign that large holders, or ‘whales,’ are actively positioning for sharp price swings. This activity likely represents either hedging against downside risk or setting up leveraged bets on volatility. While the ETF flows indicate renewed institutional buying interest, this parallel on-chain movement underscores a market that is far from complacent, with sophisticated players preparing for potential turbulence ahead.

The immediate future of the crypto rally appears tethered to traditional financial markets and upcoming U.S. economic releases. Traders are intently focused on today’s Non-Farm Payroll (NFP) report and Friday’s Consumer Price Index (CPI) data. These two data points hold the power to reset market expectations for Federal Reserve interest rate policy, a primary driver of liquidity and risk appetite that directly impacts digital asset valuations.

The broader market context adds weight to these concerns. Bitcoin’s recent correction dragged down major altcoins like Ethereum, XRP, and BNB, contributing to a total crypto market capitalization fall to $2.36 trillion—a daily loss exceeding $50 billion. However, the downturn has not been uniform. Assets like XMR gained 3%, and ZRO surged 20% to enter the top 100 by market cap, indicating selective capital rotation even within a stressed environment.

Amid the price volatility, Chainlink co-founder Sergey Nazarov highlighted a constructive underlying trend on February 10, noting that the expansion of real-world assets (RWAs) on blockchain continues, sustained by institutional interest in the technology’s advantages and 24/7 markets. This suggests a maturation occurring beneath the market’s speculative surface. Nevertheless, as QCP warns, historical price patterns and current derivatives positioning mean traders must navigate this period with careful risk management, balancing the fragile optimism from returning ETF inflows against the potential for macroeconomic shocks.