After weeks of subdued performance and net outflows, the crypto market staged a modest comeback over the weekend, led by Bitcoin (BTC) and Ethereum (ETH). 

As of today, BTC is trading at $87,697, reflecting a 3.59% daily gain and a 4.93% rise over the past week, according to data from CoinMarketCap.

This rebound appears to have been influenced by a broader recovery in equities, following measured comments from US Federal Reserve Chair Jerome Powell at last week’s FOMC meeting.

Powell's remarks helped ease investor concerns over a looming recession, according to a report by QCP Capital, which also highlighted that equities futures posted a solid bounce, giving risk assets—including crypto—room to breathe.‍

ETF Inflows Show Renewed Confidence

One of the most encouraging signals for the market came from the spike in spot Bitcoin ETF inflows. QCP Capital reports that 8,775 BTC, worth approximately $744 million, were purchased last week through ETF products. This marks a sharp reversal from the preceding weeks of net outflows and suggests a shift in investor sentiment.

Complementing this, CoinShares revealed in its weekly report that digital asset investment products saw $644 million in net inflows, ending a five-week streak of outflows that had totaled $5.4 billion. 

Bitcoin was the major beneficiary, attracting $724 million in inflows, while short-Bitcoin products experienced $7.1 million in outflows for the third consecutive week, further reflecting a growing bullish sentiment.

“These flows represent a decisive shift in sentiment toward the asset class,” CoinShares noted, pointing out that each day of the week saw inflows—a stark contrast to the 17 consecutive days of outflows prior.‍

Altcoins See Mixed Performance

While Bitcoin led the rally, Ethereum didn’t share the same momentum. CoinShares recorded $86 million in outflows from Ethereum investment products, making it the hardest-hit among major altcoins. Other altcoins like Sui, Polkadot, Tron, and Algorand also saw outflows, albeit in smaller volumes.

However, there were pockets of strength: Solana (SOL) drew in $6.4 million, and Polygon (MATIC) and Chainlink (LINK) each saw modest inflows of $0.4 million and $0.2 million, respectively.‍

Real Demand or Temporary Bounce?

Despite the optimistic signs, analysts urge caution. QCP Capital points out that the rally appears to be driven by genuine spot demand rather than leveraged speculation—a positive sign, given that leverage-fueled rallies tend to reverse quickly on liquidations. Perpetual open interest remains subdued, and funding rates are flat, supporting the idea that this bounce is grounded in real buying activity.

Still, risks remain. Upcoming tariff escalations, expected on April 2, could weigh on market sentiment again. Meanwhile, the options market reflects a more neutral stance, with implied volatility trending lower and risk reversals flattening, signaling a “wait-and-see” approach among more sophisticated traders.

QCP warns that the market could mirror last week’s pattern, where Sunday’s rally quickly faded within 48 hours. “We remain cautious on prospects for a sustained breakout higher,” the firm stated.‍

US Leads Capital Flows

Geographically, the US dominated inflows, accounting for $632 million of the total, according to CoinShares. However, positive sentiment extended beyond US borders, with Switzerland, Germany, and Hong Kong recording inflows of $15.9 million, $13.9 million, and $1.2 million, respectively.

As the crypto market enters the final week of March, all eyes will be on whether Bitcoin can hold above the $87,000 mark and whether the rally broadens to altcoins like Ethereum and others that have lagged behind.