Can Crypto Absorb $1.7B in Redemptions?
Last week, crypto markets experienced their sharpest reversal in institutional sentiment this quarter. Bitcoin and Ethereum spot ETFs shed a combined $1.7 billion, snapping a month-long stretch of inflows. At the same time, derivatives markets recalibrated after a mid-week flush, while on-chain signals painted a split picture — exchange balances continue to tighten, but staking dynamics suggest latent supply risks.
Macro expectations for Fed easing remain a supportive undertone, yet flows are increasingly dictating short-term price action.
ETF Flows: From Cushion to Risk Factor
The steady cushion provided by spot ETF demand abruptly disappeared. Bitcoin products saw $903 million leave, while Ethereum vehicles lost $796 million….
