Crypto inflows surge – Will Bitcoin hold on after $725M in institutional support?

• Crypto inflows of $644 million have broken the one-week outflow streak, signaling renewed investor confidence
• Bitcoin has continued to maintain its supremacy across the market

The crypto market saw a major turnaround last week, with $644 million in inflows – Ending five weeks of outflows. This shift is a sign of growing investor confidence, especially as institutional demand rises.

Bitcoin [BTC] led the recovery, pulling in $724 million, reversing its $5.4 billion outflow trend from previous weeks. On the contrary, Ethereum [ETH] faced $86 million in outflows, while Solana [SOL] gained $6.4 million, showing that investors remain selective.

Crypto inflows show Bitcoin’s support is unhinged

Despite successive market shocks, Bitcoin’s dominance remains solid, holding steady above 60% – The same level observed prior to the elections. Interestingly, this stability follows a substantial retracement from its all-time high of $109k to its massive drop to $78k.

The price action is indicative of strong conviction. Despite short-term fluctuations, a bullish continuation towards a new all-time high remains a plausible scenario. Especially with upward momentum likely to build over the long-term horizon.

The $724 million in crypto inflows further confirmed sustained demand for BTC, bolstering its market dominance. 

However, the disparity in crypto inflows also revealed underperformance in altcoins, particularly Ethereum. In fact, the crypto has seen consecutive outflows from ETFs over the past two weeks.

Source: Farside Investors

This trend has only reinforced Bitcoin’s dominant position, as it continues to capture the lion’s share of institutional capital.

Amid speculation of a bearish Q2 driven by shifting fiscal and monetary policies, the $644 million crypto inflows into digital assets may act as a critical catalyst for a market reversal. 

The  inflows into Bitcoin signal robust institutional confidence. This, coupled with reduced selling pressure, could fuel upward momentum, potentially mitigating broader market headwinds and triggering a rebound in the coming quarters.

Bitcoin’s position in a bearish Q2 – Navigating market headwinds

With Q2 set to unfold under bearish conditions, President Trump’s reciprocal tariffs, effective 02 April , could compound existing macroeconomic pressures. 

Historically, such macro headwinds have led to significant price corrections in Bitcoin. The asset has even lost the critical $80k support zone on two separate occasions. 

Source: TradingView (BTC/USDT)

On the contrary, on-chain metrics and crypto inflows suggested that while volatility may intensify, Bitcoin’s long-term market structure and demand could offer structural support.

Nevertheless, the $5.4 billion in outflows from BTC ETFs over the past few weeks warrants attention. While Bitcoin’s dominance remains unshaken, the true test of its resilience is fast approaching.

If institutional and retail inflows continue to mirror recent patterns, Bitcoin could potentially weather the choppy market conditions.

However, should crypto inflows reverse, FOMO could dissipate, putting Bitcoin’s rally at risk. In such a scenario, a potential retraction to the $80k support zone would remain a viable downside target, with greater risk of a deeper correction.