Crypto Rebounds, But ETFs Remain Net Sellers—Beware of Fake Rallies
The crypto market began 2026 with a positive sentiment on Friday, helped by hopes of a US interest rate cut this year and increased risk-on appetite, although a strengthening dollar and higher yields have caused market fluctuations. Globally, market participants are also monitoring geopolitical tensions and the direction of US economic policy, which could quickly shift risk appetite.
BTC $89,713 (+1.78%), ETH $3,117.78 (+4.45%), SOL $131.10 (+4.64%), XRP $1.98 (+5.88%), and BNB $878.97 (+2.21%). The movement of ETH and several altcoins appears more aggressive, indicating that investors are starting to "seek beta" as sentiment improves.
From a fundamental perspective, the biggest focus remains on the Fed's policy and a series of US economic data in early January. Expectations of lower interest rates typically support non-yielding and riskier assets, including crypto—but the market remains sensitive if economic data turns out to be too hot and changes the pricing rate cut.
However, one factor continues to keep traders defensive: inconsistent crypto ETF fund flows. Farside data shows that the spot Bitcoin ETF recorded a net outflow of -$348.1 million on December 31, 2025, after a large inflow the day before. This pattern often makes early-year rallies easy to resist, as it requires confirmation that "big money" will return to net buying for several consecutive days.
Source: Newsmaker.id
