Cryptocurrency Market Shows Signs of Recovery as Institutional Inflows Strengthen

The cryptocurrency market witnessed a notable rebound on the 30th, driven by a combination of improved investor sentiment and the resurgence of institutional capital inflows. Bitcoin (BTC) and Ethereum (ETH) posted modest gains, signaling renewed optimism among market participants as macroeconomic and institutional trends point toward stabilization.

Cryptocurrency Market Overview: Key Metrics Show Growth

According to CoinMarketCap, the global cryptocurrency market capitalization reached $3.08 trillion (approximately 4,321 trillion KRW) as of the afternoon, reflecting a 0.62% increase compared to the previous day. Bitcoin’s dominance slightly increased to 57.9%, reinforcing its position as the leading cryptocurrency. Meanwhile, the Alternative Fear & Greed Index, which gauges market sentiment, held steady at a neutral level of 43, indicating neither excessive fear nor exuberance, but rather a stabilizing market environment.

Bitcoin and Ethereum Lead Recovery

Bitcoin recorded a 1.15% price increase over the past 24 hours, climbing to $113,502 and reversing its latest downtrend. Ethereum followed suit with a 1.01% gain, rising to $4,171. These upward shifts in price reflected broader market momentum as buyers returned to the fold.

Performance in cryptocurrency futures markets highlighted mixed sentiment but moderate optimism in longer-term positioning. CME Bitcoin futures showed contrasting trends; the October contract saw a 0.82% dip to $114,280, but the December contract rose 0.32%. Ethereum futures followed a similar pattern, with the October contract declining 0.60% while the December contract advanced 0.64%. These futures data points underscore cautious but positive institutional sentiment, especially toward the year-end outlook.

Institutional Inflows Regain Steam

Institutional investment made a significant comeback, particularly within cryptocurrency ETFs. Data from Facside Investors revealed strong net inflows as of the 29th, with Bitcoin ETFs attracting $518 million (around 726.8 billion KRW) and Ethereum ETFs bringing in $547 million (approximately 767.4 billion KRW). This marked a shift to net positive inflows for both asset classes after a five-day streak of outflows.

Leading the inflows were Fidelity's ETFs. The Fidelity Bitcoin ETF (FBTC) captured $298.7 million (419.1 billion KRW), while the Fidelity Ethereum ETF (FETH) took in $220.2 million (283.7 billion KRW). Though some minor withdrawals occurred within BlackRock's ETFs, the positive net trend reinforced renewed institutional confidence in digital assets.

The timing of these inflows coincided with rising optimism for a strong October performance, often referred to as “Uptober.” Additionally, expectations for interest rate cuts or stabilization likely contributed to the improved appetite for risk assets like cryptocurrencies.

Altcoins Exhibit Mixed Performance

While Bitcoin and Ethereum stabilized, the broader altcoin market displayed uneven trends. Binance Coin (BNB) gained 1.31%, showcasing resilience, but Solana (SOL) and Sui (SUI) struggled. Solana fell by 0.65%, whereas Sui experienced a sharper decline of 2.63%, making it the weakest-performing token of the day. HyperLiquid (HYPE), Avalanche (AVAX), and Hedera (HBAR) also dropped between 6% and 7%.

On a weekly basis, Avalanche (-16.66%), HyperLiquid (-7.84%), and Solana (-5.54%) emerged as standout underperformers. Analysts linked these drops to forced liquidations of leveraged positions and broader short-term market corrections, which created downward pressure on prices.

Macroeconomic Tailwinds Supporting Cryptocurrency Recovery

The macroeconomic landscape provided favorable conditions that contributed to the market’s rebound. The U.S. 10-year Treasury yield declined by 0.19% to 4.133%, indicating greater stability in the bond markets. Additionally, the Dollar Index (DXY) fell 0.24% to 97.299, alleviating the impact of dollar strength on risk assets.

Both developments created a more supportive environment for cryptocurrencies, which share a close inverse relationship with traditional financial metrics like dollar strength and Treasury yields. As these pressures eased, investors appeared more willing to re-engage with riskier digital assets.

Investor Sentiment Points to Gradual Recovery

The Alternative Fear & Greed Index reflected a “neutral” market sentiment at 43, representing a slight improvement compared to the previous week. This neutral position indicates that overly bearish conditions have subsided while still leaving room for further recovery.

A combination of renewed institutional inflows and favorable macroeconomic developments suggests the cryptocurrency market is poised for incremental gains. Bitcoin and Ethereum’s recovery could serve as pivotal indicators of broader resilience across digital assets, particularly as external pressures stabilize and institutional confidence continues to grow.

As this rebound gains momentum, the interplay of market sentiment, macroeconomic factors, and institutional participation will be critical in determining the trajectory of the cryptocurrency market in the months ahead.