Bitcoin Surges Past $85K as Market Sentiment Shifts—What’s Next?

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QCP Insights: <a href="https://usdinrusd.com/btc-usd/">Bitcoin</a> Back Above $85K As Fear and Greed Index Rises to 45%

Over the weekend, both Bitcoin and Ethereum made a comeback, surpassing $85,000 and $2,000 respectively, due to increased ETF investments and a positive market outlook. Yet, potential macroeconomic threats, such as impending tariff increases, might undermine the longevity of this upward trend.

Crypto Market Recovers as Bitcoin ETF Demand Returns, But Risks Linger

The crypto market rebounded over the weekend, with bitcoin reclaiming $85,000 and ether surpassing $2,000. The rally was driven by improving sentiment in equities and Federal Reserve Chair Jerome Powell’s cautious but reassuring remarks last week.

According to QCP’s market insights on March 24, one of the key catalysts behind this recovery was the sharp reversal in bitcoin spot ETF inflows. Last week, ETFs saw a net addition of 8,775 BTC, valued at approximately $744 million, after multiple weeks of outflows. This influx of fresh capital suggests a rotation of liquidity back into crypto, with the rally appearing to be led by genuine spot demand rather than excessive leverage.

Over the past week, the Crypto Fear & Greed Index has risen from 32% to 45%, approaching the neutral zone. At the same time, information from the options market suggests a balanced position, as implied volatility decreases and risk reversals level off.

Although things seem to be moving forward, there’s still a lingering sense of doubt. The possibility of increased tariffs in April might cause trouble for risky investments again, and traders are cautious about experiencing another brief rally like the one we saw last week, which quickly reversed within two days. Cryptocurrency investors continue to watch closely for indications of lasting growth or another dip.

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2025-03-25 16:59