FX.co ★ Inflows into crypto market shrink

Bitcoin has already risen to around $70,000, up 4% since the open. Ethereum is also holding comfortably above $2,100.

At the same time, the cryptocurrency market is experiencing a slowdown in capital inflows, reflecting a shift in sentiment among different investor categories. According to JPMorgan estimates, inflows into crypto assets in Q1 2026 totaled about $11 billion, a significant decline versus the previous year. Extrapolated to a full year, that would imply roughly $44 billion in total inflows, well below the record $130 billion logged in 2025.

The study also found that the bulk of Q1 investment came not from retail or traditional institutional investors but from corporate Bitcoin purchases, including sizable investments by the company Strategy, as well as venture fund activity. Meanwhile, flows from retail audiences and conventional institutions were weak and in some cases even negative. This highlights a changed landscape for crypto investment, where corporate players and venture capital are taking the lead while more traditional market segments lag behind.

Bitcoin and Ethereum ETF flows also point to a trend of outflows, particularly noticeable in January. This may be due both to waning interest and to profit-taking after the prior rally. Another pressure factor is miner activity: a large share of recently mined bitcoins has been sold, increasing market supply and potentially weighing on prices.

Add the war in the Middle East, and the recent rally in the crypto market no longer looks as sustainable.

Trading recommendations

Bitcoin

Buyers are currently targeting a return to $69,600, which would open a direct path to $71,400 and then $72,500. The furthest target is the high near $74,600; a break above that would signal attempts to return to a bull market. On a pullback, I expect buyers at $68,000. A drop back below that area could quickly push BTC toward $66,400, with a further target around $64,900.

Ethereum

A clear close above $2,140 would open a direct path to $2,160. The ultimate target is the high near $2,238; a break above that would strengthen bullish sentiment and revive buyer interest. On the downside, I expect buyers at $2,117. A return below that area could quickly push ETH toward $2,096, with a further target around $2,037.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.