# capital flows

Market participants are navigating a landscape defined by cautious optimism and heightened regulatory risk, with capital rotation stalled and Ethereum facing pronounced outflows. Despite strong Bitcoin ETF inflows, investors remain wary, highlighting selective risk-taking and unresolved macro pressures. These dynamics underscore the market's anticipation of a significant shift, but conviction remains elusive.

Acute market volatility driven by geopolitical events has led to significant losses in major cryptocurrencies, with Ethereum facing over $1 billion in sell pressure within an hour. Institutional momentum and stablecoin integration are creating new opportunities, while ETF outflows and defensive trading signal rising caution among investors. These developments highlight the evolving risks and strategic shifts in the digital asset market.