The recovery of quotations coincided with the decline in the cost of oil to $93 and the growth of stock indices. According to market maker Enflux, the cryptocurrency “easily endured” the high volatility in the commodities market. During the period of instability, bitcoin held its position noticeably better than traditional stocks.
Institutional demand and ETFs
Capital inflows into the sector continue. Over the week, investors put about $568 million into spot bitcoin ETFs in the U.S. Total inflows into these products exceeded $55 billion, according to forklog.com.
Activity in the cryptocurrency market continued despite weak macroeconomic statistics from the US. Amid data on the loss of 92,000 jobs, investors began to withdraw funds from the S&P 500 index. Ryan Kirkley, head of Global Settlement, noted that for institutional investors, the decline in bitcoin price was a reason for a favorable entry into the market.
Glassnode analysts also record the stabilization of the industry: the demand for funds is growing and profitability is returning. On Polymarket, the probability of digital gold rising to $75,000 by the end of March rose from 34% to 55%.
Altcoin dynamics
The largest assets by capitalization moved to growth following the first cryptocurrency. Ethereum overcame the psychological boundary of $2000, rising to $2046 (+2.8% per day). FxPro analysts believe that the coin needs to consolidate above $2500 to confirm a stable uptrend.
Solana rose by 3.4% to $86.49. Despite the local rise, the asset is still trading 70.5% below the historic high of $293.31. Against the backdrop of declining activity in the meme-token segment, the “people’s cryptocurrency” became more dependent on the general macroeconomic background
Other coins from the top 10 also show positive dynamics: BNB grew by 3.4%, reaching $644; XRP added 2.3%, rising to $1.38. Throughout March, the asset held in a narrow range between $1.3 and $1.45.
The next test for the market will be the Fed meeting on March 17-18. Bitcoin’s correlation with the S&P 500 index reached 0.78, the highest since mid-2022.
The high dependence on the stock market means that any signals from the regulator about a possible key rate hike could trigger a sell-off in digital assets.
