- Bitcoin, Ethereum, and XRP prices rise amid declining sentiment.
The ongoing war between the United States, Israel, and Iran, now in its second month, continues to negatively impact cryptocurrency assets as recovery attempts are quickly absorbed, leading to repeated declines.
Sentiment remains, as indicated by the Fear and Greed Index, which recorded a reading of 8 on Wednesday, in the extreme fear zone since March 19. The index briefly rose to 28 on March 17 but then declined again, suggesting that overall market sentiment remains weak.
Fear and Greed Index | Source: Alternative
The war in the Middle East, macroeconomic uncertainty, and widespread pessimism are among the factors contributing to market weakness. If these conditions do not improve, any recoveries could quickly fade, with corrections dominating the scene.
- Cash flows are heading toward Bitcoin and Ethereum ETFs.
Interest in spot ETF funds for Bitcoin remains steady, with approximately $118 million in inflows recorded on Tuesday, up from about $69 million on Monday.
US-listed Bitcoin ETFs experienced a significant rebound, with average inflows of $56.12 billion, bringing total assets under management to $87.46 billion. If these cash flows continue this week, Bitcoin’s financial situation could improve, supporting a sustainable price recovery.
Bitcoin | Source: SoSoValue
Ethereum saw similar cash flows, totaling around $31 million on Tuesday, compared to about $5 million on Monday. Data from SoSoValue indicates that total cumulative inflows reached $11.56 billion, while the average net assets stand at $11.98 billion.
Ethereum ETF | Source: SoSoValue
Meanwhile, institutional demand for XRP digital investment products has decreased significantly over the past few weeks, as evidenced by weak activity in spot ETFs on Tuesday. Additionally, outflows of $2.3 million were recorded on Monday, leading to a decline in investor interest.
Cumulative ETF inflows remain at $1.21 billion, while net assets under management have fallen to approximately $944 million from a record high of $1.65 billion on January 1.
XRP ETF inflows | Source: SoSoValue