The crypto market has witnessed a dramatic turnaround, with investment inflows breaking a five-week outflow streak totalling $5.4 billion. Net inflows of $644 million last week signal renewed investor confidence, driven by optimism about the Federal Reserve’s monetary policy.

Bitcoin Leads the Comeback

Bitcoin (BTC) spearheaded the recovery, recording $724 million in net inflows, according to CoinShares. This surge not only reversed the prolonged outflows but also highlighted BTC’s dominance in driving market sentiment.

Bitcoin ETFs mirrored this trend, contributing significantly to the inflows. The United States led the pack, with $632 million flowing into crypto products, while smaller contributions came from Switzerland ($15.9 million), Germany ($13.9 million), and Hong Kong ($1.2 million).

Altcoins Struggle Amid Bitcoin’s Rally

Despite Bitcoin’s robust performance, altcoins continued to face selling pressure. Ethereum (ETH) led the outflows with $86 million, maintaining its status as the hardest-hit asset.

Other altcoins also lagged:

• Sui (SUI) and Polkadot (DOT) each saw $1.3 million in outflows.
• Tron (TRX) and Algorand (ALGO) recorded outflows of $950,000 and $820,000, respectively.

However, a few assets defied the trend. Solana (SOL) emerged as a standout, attracting $6.4 million in inflows, while Polygon (POL) and Chainlink (LINK) posted modest gains of $400,000 and $200,000.

US Investors Drive Market Optimism

The majority of the week’s inflows originated from the United States, underscoring the region’s influence in reversing the market’s downward trajectory. The inflows reflect growing confidence in crypto investment products, driven by expectations of a favourable shift in monetary policy.

A Positive Shift for the Market?

The return of crypto inflows marks a decisive shift in sentiment after weeks of declines. While Bitcoin leads the recovery, challenges persist for altcoins struggling to capture investor interest.

As optimism grows, the market watches whether this resurgence can sustain itself, especially with regulatory and macroeconomic factors still in play. For now, the inflows signal a much-needed breath of fresh air for the crypto ecosystem.