Cryptocurrency markets traded in a narrow range toward the end of the week as investors stayed cautious ahead of key U.S. inflation and growth data, with macro uncertainty continuing to shape sentiment, according to a note from Nexo analyst Iliya Kalchev.
Get premium news and insight by upgrading to InvestingPro Bitcoin hovered slightly above $68,000 while Ethereum remained capped below the $2,000 level, reflecting selective positioning rather than broad risk-taking. Recent headlines have underscored a more cautious macro backdrop, with hawkish signals from the Federal Reserve’s January meeting minutes weighing on risk assets and reinforcing expectations that rate cuts could be delayed.
Geopolitical tensions have also influenced market dynamics. Rising uncertainty surrounding U.S.–Iran relations has boosted safe-haven flows into the dollar and gold while limiting upside in liquidity-sensitive assets such as crypto.
Kalchev noted that U.S. Bitcoin ETFs recorded about $165 million in net outflows, while Ethereum ETFs saw roughly $130 million leave the market, mirroring broader reports of institutional caution as investors reassess exposure amid macro volatility.
Bitcoin continues to consolidate following its early-February correction, even as network fundamentals strengthen. Mining difficulty has climbed sharply, and hashrate has rebounded, suggesting underlying resilience despite price consolidation. Market watchers say the asset remains sensitive to macro signals, particularly inflation data that could shape Fed policy expectations.
Beyond crypto, markets have shown mixed risk appetite, with gold trading near record levels and the dollar on track for a strong weekly gain as investors hedge geopolitical risks and rate uncertainty.
Looking ahead, traders are focusing on U.S. Core PCE inflation and GDP figures, which could determine whether digital assets break out of consolidation or remain range-bound. Kalchev added that regulatory discussions around stablecoin legislation remain a longer-term structural catalyst, but near-term price action will likely continue to hinge on macro developments and investor positioning.
