- Global crypto market cap rose to $2.97 trillion as selling pressure eased.
- Bitcoin and Ethereum gained as ETF inflows and institutional buying resumed.
- Asia-focused liquidity measures and sector rallies supported market sentiment.
The crypto market moved higher on Tuesday as Bitcoin held above $88,000 and Ethereum extended gains. The rebound followed renewed ETF inflows, institutional accumulation, and easing selling pressure. Stable interest rate expectations and Asia-focused liquidity measures also supported prices.
Crypto Market Records Broad Rebound
The global cryptocurrency market advanced on Tuesday, lifting total market capitalization to $2.97 trillion, a 0.41% increase in 24 hours. Despite the daily gains, the broader market remains down 15.06% year over year. Bitcoin continued to dominate market value, accounting for $1.77 trillion, or 57.43% of the total crypto market.
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Bitcoin and Ethereum Stabilize Prices
Bitcoin traded near $88,359, posting a 0.7% daily gain, though it remained down 3.6% over the past week. Ethereum outperformed Bitcoin on a daily basis, rising 2.5% to $2,937.45.
However, ETH remained 7.3% lower week over week, reflecting lingering pressure from earlier sell offs. XRP also moved higher, gaining 1.1% to $1.90, though it remained down 3.3% over the past seven days.
Market observers noted that price action across major tokens reflected relief buying rather than aggressive risk-taking, with traders remaining selective.
ETF Inflows Improve Market Sentiment
Investor flows played a key role in the market’s rebound. U.S. spot Bitcoin exchange-traded funds recorded $6.84 million in net inflows on Monday, ending a five-day run of outflows, according to Farside.
Spot Ethereum ETFs also turned positive, posting $117 million in net inflows after four straight days of withdrawals. Solana and XRP spot ETFs recorded smaller but positive inflows, signaling broader institutional participation.
The return of ETF inflows helped ease concerns over declining demand from traditional investors and supported short-term price stability.
Institutional Buying Supports Prices
Large-scale accumulation by institutional players added further support. MicroStrategy disclosed the purchase of 2,932 Bitcoin for $264 million, bringing its total holdings to 712,647 BTC.
Ethereum also saw notable buying, with BitMine acquiring more than 40,302 ETH yesterday at approximately $117 million. This accumulation brings the firm’s holdings to over 4.24 million tokens, a 3.52% of ether’s supply. Blockchain data showed continued accumulation by large wallets, even as retail sentiment remained cautious.
Asia Liquidity Measures and Sector Gains
Asia-based developments also contributed to improved sentiment. The People’s Bank of China announced it would double its yuan liquidity facility for Hong Kong banks to 200 billion yuan, effective next week. Analysts said the move could support offshore liquidity and cross-border flows into digital assets.
Sector performance added to the rebound. GameFi tokens led gains, with Axie Infinity rising more than 30% in 24 hours. DeFi, Layer 2, and derivatives-related tokens also advanced, supported by higher trading volumes.
Crypto Market Outlook Remains Cautious
Despite the rebound, elevated Bitcoin dominance suggests investors continue to favor large-cap assets over smaller tokens. Market participants are monitoring upcoming U.S. GDP data, major token unlocks, and central bank policy decisions for further direction.
Related: Bitcoin Price Prediction: $191M Accumulation Wave Tests Bollinger Band Support
While prices have stabilized, analysts say broader market conditions remain sensitive to macroeconomic developments and liquidity trends.
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