ETF Demand Holds Strong, but On-Chain Selling Persists Amid Macro Uncertainty

Crypto markets are experiencing an interesting phase as demand for US spot Bitcoin and Ethereum ETFs remains strong. The collective inflows of $1.1 billion last week indicate continued interest in institutional products.

However, a more nuanced picture emerges when considering blockchain data. Large holders and miner wallets continue to transfer significant amounts of BTC to exchanges, contributing to on-chain selling pressure.

The interaction between ETF flows, on-chain activities, and macro liquidity is becoming increasingly important. The next major catalyst may not be ETF flows alone, as macro conditions, such as this week's CPI report, could determine the market's direction.