Cryptocurrencies Remain Firm amidst Convergence of Macroeconomic Factors and Pre-Consumer Price Index Positioning
In the dynamic world of cryptocurrencies, we bring you an exclusive analysis, available only to our paying subscribers. This article delves into the current state of the market, focusing on Bitcoin (BTC) and Ethereum (ETH).
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Recent on-chain data suggests a state of seller exhaustion in the cryptocurrency market. Institutional investors, who maintain a net long position in cryptocurrencies, are playing a significant role. They currently hold significant long-term positions in both Bitcoin and Ethereum, with about 25% of Bitcoin ETPs owned by institutions and Ethereum capturing 90% of crypto-ETF inflows by Q3 2025.
The surge in institutional interest can be attributed to regulatory clarity and the allure of staking yields. However, indicators of potential selling pressure from increased unrealized gains are also present. Recent large liquidations totaling over $550 million during Bitcoin and Ethereum price corrections highlight moments of market volatility but also possible repositioning by institutional holders.
The Consumer Price Index (CPI) is now the critical short-term trigger for the cryptocurrency market. As we approach the CPI day, both Bitcoin and Ethereum start at significant price zones. The MVRV (Market Value to Realized Value) ratio of ETFs has risen to 2.43, indicating elevated unrealized profits and potential profit-taking risk.
Meanwhile, Ethereum has broken out above $4,000, contributing to a broad risk-on tone. This development, coupled with ETF flow resilience and on-chain accumulation, suggests that structural demand for cryptocurrencies remains intact.
Short-term volatility may spike post-data release, but on-chain and derivatives data indicate seller exhaustion and measured re-leveraging. In other words, the cryptocurrency market is experiencing a broad risk-on tone, with Ethereum leading the charge.
We hope this exclusive analysis provides valuable insights into the current state of the cryptocurrency market. To continue receiving such updates, we encourage you to subscribe and stay ahead of the curve in the ever-evolving world of cryptocurrencies.
