Crypto Comeback: Bitcoin, Ethereum, and XRP Soar as Geopolitical Fears Subside and Inflows Surge

Cryptocurrency markets, led by Bitcoin, Ethereum, and XRP, have demonstrated remarkable resilience, rebounding strongly despite recent geopolitical tensions. This recovery is largely attributed to a significant surge in institutional investment, with crypto funds experiencing their tenth consecutive week of inflows, signaling robust investor confidence amidst global uncertainties.

Crypto Markets Defy Geopolitical Jitters

Despite a volatile weekend marked by US strikes on Iranian nuclear sites and subsequent retaliatory actions, the cryptocurrency market has shown unexpected strength. Bitcoin, which briefly dipped below $100,000, quickly rebounded, reclaiming the $102,400 level and even surging to nearly $106,000. Ethereum also saw a significant jump, rising 10% to $2,430. This resilience suggests that investors are not buying into a prolonged doomsday scenario, viewing the conflict as regionally contained and short-lived.

Institutional Inflows Drive Recovery

Digital asset investment products have recorded their tenth straight week of inflows, totaling $1.24 billion last week and pushing year-to-date inflows to a record $15.1 billion. This sustained institutional interest has been a key factor in the market's recovery.

• Bitcoin Dominance: Bitcoin remained the primary magnet for capital, attracting $1.1 billion in inflows. US-based spot Bitcoin ETFs, particularly BlackRock's iShares Bitcoin Trust (IBIT), played a crucial role, with IBIT alone seeing $1.23 billion in weekly inflows.

• Ethereum's Strong Run: Ethereum extended its inflow streak to nine consecutive weeks, bringing in $124 million last week. Since mid-April, Ethereum has accumulated over $2.2 billion in inflows, partly due to the recent Pectra upgrade and growing institutional interest.

• Altcoin Resilience: Other altcoins like Solana ($2.78 million) and XRP ($2.69 million) also saw modest inflows, indicating a cautious but continued appetite for alternative Layer 1s.

Market Sentiment and Technical Indicators

The market's quick recovery is also reflected in shifting sentiment and technical indicators. The rapid bounce back from the $98,000 level, which represents the average cost basis for short-term holders, reinforces the idea that the worst may be over. Derivatives data shows compressing frontend volatility, suggesting traders are pricing out wider contagion risk. The CME Bitcoin futures market also opened with a substantial gap, which historically acts as a magnet for price, further signaling bullish momentum.

Ethereum-Focused Company Surges

SharpLink Gaming, a publicly-traded company with significant Ethereum holdings, saw its shares surge 45% on Monday. This rise follows a Fundstrat note highlighting the company's attractive valuation compared to its ETH holdings. The company, now led by Ethereum co-founder Joe Lubin, has attracted substantial investment from prominent crypto firms, including Pantera Capital and Galaxy Digital, underscoring growing institutional confidence in Ethereum and its ecosystem.

Sources

• Bitcoin and Ethereum inflows surge past $1.2B despite rising geopolitical risks, CryptoSlate.

• Ethereum treasury company SharpLink gaming surges 45% as ETH leads rally, TheStreet.

• Bitcoin, Ethereum, XRP flash recovery signals after rollercoaster weekend, FXStreet.

• Bitcoin and Ethereum Brush Off War Fears as Risk-On Sentiment Returns, Brave New Coin.

• Ethereum Price Today Hits $2,262 — Institutions Stack $113M Worth of ETH! — TradingView News, TradingView.