In a significant turnaround, crypto funds attracted $1 billion in fresh investments last week, effectively reversing the preceding five-week trend that had seen outflows totaling $4 billion, as reported by digital asset manager CoinShares. This influx highlights a rekindled interest in digital assets, particularly among institutional investors.
The primary driver of last week’s inflows was Bitcoin, with products linked to the cryptocurrency bringing in an impressive $881 million. However, the presence of $3.7 million in short Bitcoin investment products suggests a divided sentiment among investors, indicating that opinions on Bitcoin’s future are not entirely unified.
James Butterfill, head of research at CoinShares, commented on the broader market dynamics at play. While it’s challenging to pinpoint a single reason for this shift in sentiment, he noted that factors such as previous price weakness, a dip below crucial technical levels, and renewed buying activity from large Bitcoin holders have all contributed to the recent reversal. He also observed a shift in client discussions, which seemed to pivot towards identifying entry points rather than reducing exposure to cryptocurrencies.
As of now, Bitcoin is trading around $69,655, marking a nearly 4% increase within the past 24 hours. Over the week, the cryptocurrency has rebounded by more than 5%, following a sharp surge earlier on Monday. Nevertheless, it’s important to note that Bitcoin remains approximately 45% below its all-time high of $126,080, set on October 6, 2025.
Beyond Bitcoin, Ethereum also saw notable gains last week, with funds linked to the second-largest cryptocurrency attracting nearly $117 million. Solana ETFs added about $54 million, while investment products for XRP garnered just under $2 million.
Looking ahead, market participants are eagerly awaiting the upcoming Bureau of Labor Statistics (BLS) jobs report, scheduled for release on Friday, March 6. Analysts at Deutsche Bank project an unemployment rate of 4.3%, although they caution that the risks surrounding this estimate are pronounced in both directions. Additionally, revisions to January’s data are expected, prompting scrutiny over whether these adjustments will significantly alter unemployment rates across various demographic segments, particularly among younger job seekers, where concerns about entry-level hiring remain high.
