Cryptocurrency markets remained range-bound toward the end of the week as traders adopted cautious postures ahead of important U.S. inflation and growth data, according to a research note by Nexo analyst Iliya Kalchev.
Bitcoin was trading close to $67,750 while Ethereum failed to clear the $2,000 threshold, a pattern that Kalchev described as selective positioning rather than a widespread appetite for risk. Recent developments in macroeconomic policy and geopolitics have dampened broader market enthusiasm.
The Federal Reserve’s January meeting minutes contained hawkish language that pressured risk assets and bolstered expectations that policymakers may postpone rate cuts, the note said. That shift in the policy outlook has been a dominant influence on investor behaviour, leaving digital assets particularly sensitive to incoming inflation readings.
Geopolitical developments have also affected flows into financial markets. Heightened uncertainty around U.S.-Iran relations has driven demand for traditional safe havens such as the U.S. dollar and gold, while curbing demand for assets that rely on ample liquidity, including cryptocurrencies.
Institutional flows reflected this caution: Kalchev reported that U.S. Bitcoin exchange-traded funds logged approximately $165 million in net outflows, while Ethereum ETFs saw about $130 million leave. These moves highlight a period of re-evaluation among larger investors as macro volatility persists.
Despite the price consolidation, on-chain fundamentals for Bitcoin show signs of resilience. Mining difficulty has risen markedly and network hashrate has rebounded, indicating strengthening technical conditions even as the token consolidates following an early-February correction. Market participants remain attentive to macroeconomic indicators that could alter expectations for Fed policy and, by extension, the crypto market’s trajectory.
Broader financial markets displayed a mixed appetite for risk. Gold traded near record highs and the dollar was poised for a notable weekly advance as investors sought hedges against geopolitical strain and interest-rate uncertainty.
Looking forward, Kalchev said the focus will be on upcoming U.S. Core Personal Consumption Expenditures (PCE) inflation and GDP figures. These reports could determine whether cryptocurrencies break out of their current ranges or continue to trade sideways. While discussions around stablecoin legislation were identified as a potential long-term structural catalyst, Nexo cautioned that short-term price action will likely remain governed by macro data and shifts in investor positioning.
Analyst: Iliya Kalchev, Nexo