Bitcoin and Ethereum surge with record ETF inflows and weaker dollar
Bitcoin and Ethereum post strongest weekly gains in years
Bitcoin and Ethereum, the two largest cryptocurrencies, saw sharp price increases last week. Bitcoin rose 23.6%, marking its second-best weekly performance since February 2021. Ethereum climbed even higher, with a 31.3% gain.
Bitcoin’s price jumped from around $62,000 to nearly $80,000 before settling near $77,000. Ethereum moved from below $1,900 to above $2,500 before pulling back slightly.
Key drivers behind the rally
- U.S. Treasury bond buybacks pushed yields and the dollar lower, supporting risk assets like crypto.
- Bitcoin ETFs saw $1.92 billion in net inflows, their largest weekly total since October 2025.
- Ethereum ETFs recorded $697 million in inflows, their strongest week since early October 2025.
- Both Bitcoin and Ethereum moved above their 200-day moving averages, a key technical indicator.
ETF inflows hit highest levels since late 2025
U.S.-listed spot Bitcoin and Ethereum ETFs attracted strong investor interest. Bitcoin ETFs saw $1.92 billion in net inflows, the highest since October 10, 2025, when Bitcoin was near its record high of $126,000. Ethereum ETFs recorded $697 million in inflows, their best week since early October 2025.
An ETF, or exchange-traded fund, is a type of investment fund that tracks the price of an asset, like Bitcoin or Ethereum, and can be bought and sold on traditional stock exchanges.
Technical indicators turn bullish
Both Bitcoin and Ethereum rose above their 200-day simple moving averages, a widely watched indicator of long-term trends. Analysts also noted the potential for a "golden cross," which happens when the 50-day moving average crosses above the 200-day average. This pattern is often seen as a bullish signal.
Weaker dollar and lower yields support crypto
The U.S. Dollar Index, which measures the dollar against a basket of major currencies, fell below its 200-day average. A weaker dollar and lower bond yields have made riskier assets like cryptocurrencies more attractive to investors.
Gold, another scarce asset, also rose above its 200-day average, gaining 15% over the past month. Some investors are turning to Bitcoin and gold as a "debasement trade," a strategy to protect against the declining value of traditional currencies due to rising debt or inflation.
What is confirmed
- Bitcoin rose 23.6% last week, its second-best weekly gain since February 2021.
- Ethereum climbed 31.3% last week.
- Bitcoin ETFs saw $1.92 billion in net inflows, the highest since October 2025.
- Ethereum ETFs recorded $697 million in inflows, their strongest week since early October 2025.
- The U.S. Dollar Index fell below its 200-day average.
What is still unclear
- The long-term impact of Treasury bond buybacks on crypto markets remains uncertain.
- Whether the current rally will sustain or lead to further pullbacks is not yet known.
Why this matters for crypto investors
The sharp price increases and strong ETF inflows suggest growing investor interest in cryptocurrencies. The movement above key technical levels, like the 200-day moving average, may signal a shift in market sentiment. Additionally, the weaker dollar and lower bond yields could continue to support crypto prices in the near term.
