US crypto market booms: $7.5 billion inflows, is the bull market here?
TechFlow Selected TechFlow Selected
US crypto market booms: $7.5 billion inflows, is the bull market here?
US crypto fund inflows exceed $7.5 billion, institutional confidence rebounds, bull market may have begun.
Navigating Web3 tides with focused insightsAuthor: SuperEx
Translation: Baihua Blockchain
The crypto market has recently become a battleground of opposing views. Some analysts insist that a bull market has arrived, while others believe we are merely lingering at the tail end of the previous cycle. Neither side has fully convinced the other, but data may offer the clarity that sentiment cannot. Let's assess the current market temperature through the lens of capital flows.
According to data from SuperEx Research, U.S. crypto investment products saw net inflows of as high as $785 million last week—the fifth consecutive week of positive inflows—pushing year-to-date 2025 cumulative inflows above $7.5 billion for the first time.
This stands in sharp contrast to the massive capital outflows seen in February and March, when nearly $7 billion exited in just a few weeks. With sustained capital returning, questions are mounting: Are we witnessing the early stages of a genuine bull market?
Enhanced Expectations of Policy Easing, Reduced Uncertainty Fuel Risk Appetite
Since early May, the United States and several major economies have issued a series of "easing" signals regarding trade and monetary policy, restoring investor confidence in the overall policy environment.
On one hand, the White House has slowed its negotiation pace with key economic partners, easing concerns over potential trade conflicts. On the other, recent statements from multiple Federal Reserve officials suggest interest rates may have peaked, and market expectations for rate cuts later this year are gradually rising. Against this backdrop of dual easing, volatility in traditional financial markets has declined, prompting capital to once again view crypto assets as viable allocation targets.
Notably, improved policy predictability has played a key role. Rising liquidity in Bitcoin and Ethereum ETFs, along with softened regulatory stances in certain regions, has bolstered institutional investor confidence, driving their re-entry into the market and forming the primary engine behind the current wave of capital inflows.
Capital Concentrates on Core Assets, Ethereum Ecosystem Gains Favor
This round of capital inflow shows clear structural preferences: mainstream assets dominate, with Ethereum attracting the most attention after Bitcoin.
Data shows that Ethereum saw net inflows of $205 million last week—the largest single-week increase so far in 2025. From a technical standpoint, recent upgrades to the Ethereum network have significantly enhanced its performance and scalability, further strengthening institutional confidence in its future role within DeFi, AI-integrated blockchain services, and Rollup infrastructure.
More importantly, Ethereum is increasingly seen as a "supra-sovereign asset." It is not only a medium of exchange and collateral but also serves as the foundational "fuel" for Layer 2 ecosystems. Its value proposition is shifting from a single token to critical infrastructure.
Investors now regard Ethereum as the "digital treasury bond" of the Web3 world—not offering yield, but providing gateway-level stability and liquidity. This shift in perception is the core reason behind the growing concentration of capital in Ethereum.
Has the Bull Market Really Returned?
The key question remains: Is this a genuine bull market, or merely a relief rally?
The answer lies not in social media sentiment, but in the underlying mechanics of capital allocation, user behavior, macroeconomic conditions, and technical momentum.
Institutional Inflows Signal Returning Confidence
The strongest evidence lies in the scale of institutional participation. An inflow of $785 million in a single week was not driven by retail investors. This liquidity stems from hedge funds, family offices, and asset management firms reallocating portfolios.
Moreover, the U.S. clearly leads, contributing $681 million of this week’s total inflows. Germany follows with $86.3 million, and Hong Kong records $24.4 million in inflows. This indicates that institutional confidence is not a local phenomenon but a global one—albeit centered on the U.S.
When institutional capital begins flowing into high-risk, high-return crypto assets during relatively tense geopolitical periods, it often serves as a forward-looking signal. These participants are not chasing FOMO but positioning ahead of anticipated shifts in monetary policy or technology adoption curves.
Macro Tailwinds Are Emerging
From a macro perspective, several factors are aligning:
Interest rates peaking: While the Fed has not yet pivoted to rate cuts, there is broad market consensus that the tightening cycle has ended. A stable or looser rate environment typically benefits long-duration assets, including cryptocurrencies.
Geopolitical risk hedging: A temporary truce in U.S.-China tariffs and uncertainty in traditional markets (such as pressure on equities and a weakening dollar index) are pushing investors toward alternative assets.
On-Chain and Technical Indicators Heat Up
Beyond capital flows, on-chain activity also shows encouraging signs. Daily active addresses, total value locked (TVL), and stablecoin supply on Ethereum and its Layer 2s (such as Arbitrum and Optimism) are rising. Bitcoin’s hash rate remains at historical highs, indicating miner confidence and long-term sustainability.
Meanwhile, leading indicators such as the PI Cycle Top Indicator and MVRV ratio have not yet signaled overheating, suggesting the current rally has not reached euphoric levels.
Cautious Still Required
However, the market remains in a transitional phase, not full-blown euphoria:
-
Retail participation lags: Google search trends for "Bitcoin" and "Ethereum" remain flat, indicating retail FOMO has not yet kicked in—a hallmark of late-stage bull markets.
-
Altcoin cycle subdued: While Ethereum performs strongly, most altcoins remain far below their 2021 peaks. Until capital broadly rotates into mid- and low-cap tokens, the market may continue to be dominated by blue-chip assets.
Structural Shifts Support Long-Term Bull Case
Beyond price charts and weekly inflows, foundational improvements are underway in the industry. Ethereum’s Pectra upgrade, widespread adoption of ZK-rollups, and ongoing development of Bitcoin Layer 2 solutions (such as Lightning and Runes) are laying the groundwork for long-term scalability.
At the same time, real-world asset (RWA) tokenization is gaining traction among institutions. Companies like BlackRock, Franklin Templeton, and JPMorgan are actively exploring blockchain-based settlement of traditional securities. The convergence of traditional finance with crypto infrastructure suggests this is not just a seasonal rebound, but part of a multi-year bull narrative.
In short, the current wave of inflows is not merely speculative—it is supported by technological progress and institutional tailwinds.
Conclusion
So, has the bull market really returned?
All signs point to a cautious “yes.” We are seeing sustained institutional inflows, macro headwinds turning into tailwinds, and key technical upgrades revitalizing foundational networks like Ethereum and Bitcoin. While the market has not yet entered a state of frenzy—which is actually a good thing—it is clearly regaining strength.
For investors still on the sidelines, the coming weeks may prove critical. If inflows persist and the altcoin market follows suit, the 2025 bull run may no longer be theoretical—but a reality.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
@SuperExet
