Bitcoin Inflows Could Continue Amid Geopolitical and Monetary Policy Uncertainties

• Crypto inflows surged to $2.7 billion last week, extending an 11-week streak of positive capital movement, with Bitcoin leading the charge at $2.2 billion.

• Ethereum attracted $429 million, bolstered by the Pectra upgrade, while Solana saw minimal inflows of $91 million, reflecting varied investor confidence across altcoins.

• Geopolitical instability and Federal Reserve policy uncertainty continue to drive investor demand for Bitcoin and Ethereum as preferred hedges in a volatile global market, according to CoinShares research.

Crypto inflows hit $2.7B last week, led by Bitcoin and Ethereum amid geopolitical and Fed policy uncertainty, signaling strong institutional demand in 2025.

Bitcoin Captures $2.2 Billion as Crypto Inflows Extend an 11-Week Winning Streak

Crypto inflows have demonstrated remarkable resilience, with last week’s $2.7 billion inflow nearly matching the record pace set in the first half of 2024. Institutional investors appear confident, especially in Bitcoin, which accounted for a dominant 83% of inflows at $2.2 billion. This trend underscores Bitcoin’s continued role as a primary store of value and hedge amid market uncertainty.

Data from CoinShares reveals that the majority of these inflows originated from the United States, contributing $2.65 billion to the total. This regional concentration highlights the growing institutional adoption of crypto assets within the US financial ecosystem.

Notably, bearish positions on Bitcoin have diminished, with short-Bitcoin products shedding $2.9 million last week, bringing year-to-date outflows on bearish bets to $12 million. This reduction in short exposure signals increasing investor confidence in Bitcoin’s medium-term outlook.

Ethereum also recorded robust inflows of $429 million, pushing its 2025 total to $2.9 billion. The altcoin’s momentum has been partly fueled by the recent Pectra upgrade, which has enhanced network efficiency and investor sentiment. In contrast, Solana’s inflows remain modest at $91 million for the year, indicating selective capital allocation within the altcoin sector.

The recent surge builds on a strong three-week trend, with nearly $6 billion in inflows recorded over this period. This sustained capital movement reflects a strategic shift among investors, who are increasingly viewing crypto as a resilient asset class amid global economic headwinds.

James Butterfill, Head of Research at CoinShares, noted, “We believe this resilient investor demand has been driven by a combination of factors, primarily heightened geopolitical volatility and uncertainty surrounding the direction of monetary policy.”

Global Macro Forces Keep Crypto Inflows on Track

Macro-economic dynamics continue to underpin the robust inflows into crypto assets. Moody’s recent downgrade of the US credit outlook has intensified concerns over traditional markets, prompting investors to seek uncorrelated assets like Bitcoin and Ethereum.

Despite geopolitical tensions, including tariff threats and policy uncertainties, investor appetite for crypto remains strong, suggesting a long-term structural demand rather than short-term speculative interest.

The Federal Reserve’s ambiguous stance on interest rate cuts has further contributed to market volatility. This uncertainty has made crypto assets attractive as hedges against inflation and currency fluctuations, especially the US dollar.

Institutional investors are increasingly integrating crypto into diversified portfolios, viewing it as a strategic allocation rather than a speculative play. This alignment between crypto and traditional finance signals maturation in market perception and adoption.

Even as equity markets experience sideways movement and bond yields rise, digital assets continue to attract capital inflows, highlighting their growing role in global investment strategies.

Conclusion

The sustained $2.7 billion weekly inflows, led by Bitcoin and Ethereum, underscore a robust institutional conviction amid geopolitical and monetary policy uncertainties. With macroeconomic factors driving demand, crypto assets are transitioning from speculative instruments to strategic hedges within diversified portfolios. Investors should monitor these trends closely as crypto continues to integrate with traditional financial markets, offering potential resilience in an evolving global economic landscape.