The US crypto market is booming: $7.5 billion inflow, is the bull run here?

Compilation: Vernacular blockchain

The crypto market has recently become a battleground for opposing views. Some analysts insist that a bull market has arrived, while others believe that we are just hovering at the end of the previous cycle. Neither side was able to fully convince the other, but the data may provide a clear perspective that emotions can't. Let's assess the current market temperature through the lens of capital flows.

According to the SuperEx Institute, U.S. crypto investment products saw net inflows of $785 million last week, marking the fifth consecutive week of positive inflows, bringing the cumulative inflows to more than $7.5 billion for the first time so far in 2025.

This stands in stark contrast to the massive capital outflow in February and March, when nearly $7 billion left in just a few weeks. With the continued inflow of funds, the questions are increasing: Are we witnessing the true beginning of a bull market?

Expectations for policy easing strengthen, and reduced policy uncertainty stimulates risk appetite

Since early May, the United States and several major economies have released a series of "easing" signals regarding trade and monetary policy, restoring investors' confidence in the overall policy environment.

On the one hand, the slowdown in the pace of negotiations between the White House and major economic partners has eased concerns about potential trade conflicts. On the other hand, the latest comments from a number of Fed officials suggest that interest rates may have peaked, and market expectations for a rate cut later this year are gradually picking up. Against this backdrop of double easing, the volatility of traditional financial markets has declined, prompting capital to refocus on crypto assets as a viable allocation target. **

Notably, improved policy predictability has played a key role. **Increased liquidity in Bitcoin and Ethereum ETFs, as well as softening regulatory attitudes in some regions, have boosted institutional investors' confidence to re-enter the market and become the main driver of the current wave of capital inflows. **

Capital is concentrated in core assets, and the Ethereum ecosystem is highly favored

This round of capital inflow shows a clear structural preference: mainstream assets dominate, with Ethereum attracting the most attention after Bitcoin.

Data shows that last week, Ethereum had a net inflow of $205 million, marking the largest single-week increase so far in 2025. From a technical perspective, the recent upgrades to the Ethereum network have significantly improved its performance and scalability, further boosting institutional confidence in its future role in DeFi, AI-integrated blockchain services, and Rollup infrastructure.

What's more, Ethereum is increasingly seen as a "super-sovereign asset." It is not only a medium of payment and collateral, but also serves as the underlying "fuel" of the Layer 2 ecosystem. Its value proposition is shifting from a single token to critical infrastructure.

Investors now see Ethereum as the "digital treasury" of the Web3 world – offering no yield but the stability and liquidity of a gateway-like asset. This shift in perception is central to the increasing concentration of capital on Ethereum.

Is the bull market really back?

The key question is: Is this a real bull market, or just a relief rally?

The answer lies not in the sentiment of social media, but in the underlying mechanisms of capital allocation, user behavior, macroeconomic conditions, and technological momentum.

Institutional inflows indicate a return of confidence

The strongest evidence is the scale of institutional participation. The inflow of $785 million in a week is not driven by retail investors. This liquidity comes from hedge funds, family offices, and asset management companies reallocating their portfolios.

In addition, the United States is clearly in the lead, contributing $681 million of the total inflow this week. Germany follows closely with $86.3 million, while Hong Kong recorded an inflow of $24.4 million. This indicates that institutional confidence is not a localized phenomenon, but rather a global one, although centered around the United States.

When institutional capital starts to flow into high-risk, high-return crypto assets during relatively geopolitically tense periods, it is often a leading indicator. These participants are not chasing FOMO, but rather positioning themselves in advance for anticipated shifts in monetary policy or technology adoption curves.

Macroeconomic tailwinds are becoming evident

From a macro perspective, several factors are aligning:

• Interest Rates Reach Their Peak: Although the Federal Reserve has not yet shifted to lowering interest rates, the market generally expects that the tightening cycle has ended. A stable or loose interest rate environment typically benefits long-term assets, including cryptocurrencies.
• Geopolitical Risk Hedge: The temporary truce on tariffs between the US and China, along with the uncertainty in traditional markets ( such as pressure on the stock market and a weakening dollar index ) is driving investors towards alternative assets.

On-chain and technical metrics are heating upIn addition to capital flows, on-chain activity is also showing encouraging signs. Ethereum and its layer 2( such as Arbitrum and Optimism) are on the rise in terms of daily active addresses, total value locked (TVL), and stablecoin supply. Bitcoin's hash rate remains at an all-time high, indicating miner confidence and long-term sustainability.

Meanwhile, leading indicators such as the PI cycle top indicator and the MVRV ratio have not yet issued overbought signals, indicating that the current rebound has not reached a frenzy state.

Still need to be cautious

However, the market is still in a transitional phase, rather than a full-blown frenzy:

• Retail Participation Lagging: Google searches for "Bitcoin" and "Ethereum" show a steady trend, indicating that retail FOMO has not yet started, which is a sign of a late-stage bull market.
• Altcoin Cycle Slump: Although Ethereum is performing strongly, most altcoins are still far below their 2021 highs. Before funds broadly rotate into mid and low market cap tokens, the market may still be dominated by mainstream assets.

Structural Transformation Supports Long-term Bull Market Theory

In addition to price charts and weekly inflows, fundamental improvements are occurring in the industry. The Ethereum Pectra upgrade, widespread adoption of ZK-rollups, and the ongoing development of Bitcoin Layer 2 solutions ( such as Lightning and Runes ) lay the foundation for long-term scalability.

At the same time, the (RWA)Token of real-world assets is gaining momentum among institutions. Companies such as BlackRock, Franklin Templeton, and JPMorgan Chase are actively exploring traditional blockchain-based securities settlements. The convergence of traditional finance with crypto infrastructure suggests that this is not just a seasonal rally, but a multi-year bull market narrative.

In short, the current influx is not only speculative but also supported by technological and institutional tailwinds.

Summary

So, has the bull market really returned?

All signs point to a cautious "yes." We see continued institutional inflows, macro resistance turning into tailwinds, and key technological upgrades of foundational networks like Ethereum and Bitcoin revitalizing. While the market has not yet entered a frenzied state—this is actually a good thing—it is clearly regaining strength.

For investors who are still on the sidelines, the next few weeks could be crucial**. If inflows continue and the altcoin market follows suit, the bull market in 2025 may no longer be a theory but will become a reality.**

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