QCP Insights: Bitcoin Back Above $85K as Fear and Greed Index Spikes to 45%

Bitcoin and ethereum rallied strongly over the weekend, with bitcoin surpassing $85,000 and ether surpassing $2,000, as ETF inflows increased and market sentiment turned more positive. However, macroeconomic risks such as upcoming tariff hikes could be a drag on the sustainability of the rally.

Cryptocurrency Markets Rebound as Bitcoin ETF Demand Increases, But Risks Remain

Cryptocurrency markets saw a strong rally over the weekend, with bitcoin surpassing $85,000 and ether surpassing $2,000. The rally was fueled by bullish sentiment in the stock market and cautious but reassuring statements from Federal Reserve Chairman Jerome Powell last week.

According to a report from QCP Insights on March 24, one of the key factors driving this recovery is the marked change in inflows from spot bitcoin ETFs. Last week, ETFs recorded a net increase of 8,775 BTC, equivalent to about $744 million, after a long period of outflows. This new inflow reflects the return of liquidity to the crypto market, with this recovery being driven by genuine spot demand rather than excessive leverage.

Meanwhile, the Crypto Fear and Greed Index rose from 32% to 45% over the past week, approaching neutral territory. Data from the options market also shows a neutral stance, with reduced implied volatility and stable risk reversals.

However, there are still many uncertainties. The tariff hike scheduled for April 2 could put renewed pressure on risk assets, with traders worried about a short-term rally similar to last week, when the market retreated within 48 hours. Cryptocurrency investors remain cautious, waiting for signs that the rally is sustainable or preparing for another pullback.