Bitcoin Holds Firm Amid Tech Rout, Ethereum Attracts Institutional Money

Bitcoin is holding its ground despite the recent weakness in technology stocks, while Ethereum continues to attract institutional money through strong ETF inflows.

According to QCP Capital, Bitcoin's technical setup remains constructive at current levels, although conviction is still dependent on the broader market response to this week's events. The firm explained that BTC's contained reaction to the latest inflation data - briefly dropping to $76,700 before recovering toward $78,000 - suggests that markets have largely absorbed the prospect of a 25-basis-point rate hike.

Ethereum is showing a significantly different flow picture, with spot ETH ETFs recording nearly $197 million in net inflows for the week. Friday's $216.4 million influx helped drive the weekly total higher despite earlier outflows. In contrast, Bitcoin ETFs recorded $462.7 million in net outflows during the holiday-shortened week.

QCP Capital stated that the divergence indicated differentiated positioning between the two crypto assets. Ethereum is facing resistance at $2,500 to $2,550, while support sits at $2,400 to $2,425, and a secondary support zone is located at $2,300 to $2,350.