After weeks of caution, investors are pouring money back into crypto. According to analyst Ali Martinez, inflows have surged 350% in just two weeks, rising from $1.82 billion to $8.2 billion, signaling a strong return of market confidence.
The chart shared by the analyst illustrates the net capital flow and market sentiment around Bitcoin (BTC), Ethereum (ETH), and stablecoins from March 17 to April 3, 2025. While BTC’s price fluctuated between $82K and $87K during this period, the overall market experienced strong capital inflows, particularly towards the end of March and into early April.
Interestingly, despite the high inflows and rising stablecoin reserves on March 24, there was still net selling of BTC and ETH, suggesting profit-taking at higher prices. However, by April 3, the trend had shifted as the market saw over $8.2 billion in capital inflows with zero outflows, with a significant increase in both stablecoin reserves and BTC+ETH net position.
Bullish News Ahead?
This indicates a bullish set as the market might be gearing up for a comeback in anticipation of a price rebound. Despite market turmoil from Trump’s tariff news, investors remain bullish on Bitcoin, Ether, and other cryptos. Many are moving their money into stablecoins instead of stocks, showing growing confidence in crypto as global trade tensions rise.
Crypto Is Entering A New Phase
Despite short-term challenges, crypto is entering a new phase. Regulatory progress and rising institutional interest are driving fresh momentum, especially in venture funding. While market sentiment remains mixed, strong early signals across emerging sectors suggest the groundwork is being laid for long-term growth.
In Q1 2025, crypto venture capital saw a big comeback, with $4.8 billion invested — the strongest quarter since Q3 2022. A major driver was MGX’s record-breaking $2 billion investment in Binance, showing renewed institutional interest in big, late-stage crypto projects despite the shaky macro environment.
While the total capital surged, the number of deals slightly dipped, still the market looks healthier than in 2023. In fact, Q1 alone made up 60% of all VC funding from 2024, pointing to rising confidence and a possible shift toward a new phase of adoption.
The quarter also saw major mergers and acquisitions, like Kraken buying NinjaTrader for $1.5B and MoonPay acquiring Helio for $175M. This trend toward consolidation signals a more mature, strategic market where big players are growing through acquisitions.
Crypto Market Sees $600M Inflows
After five weeks of outflows, the crypto market saw a $644M inflow this week, signaling renewed investor confidence. Bitcoin led with $724M, while Ethereum saw $86M in outflows. The U.S. drove most of the inflow, with support from Switzerland, Germany, and Hong Kong.
Despite a brief dip after Trump’s global tariff announcement, BTC quickly bounced back, climbing to over $84,700. Meanwhile, the S&P 500 dropped over 10% and gold slipped nearly 5%. If this trend continues, Bitcoin could reach $100,000 sooner than expected.
Attorney John E. Deaton highlighted a major shift in investor sentiment in a recent X post. While the U.S. stock market lost $3.25 trillion in a single day, $5.4 billion flowed into crypto — a clear sign that investors are turning to risk assets like crypto despite market volatility.
