According to a CryptoSlate report, the crypto market shows early signs of a Q1 recovery following December's sell-off. Coinbase analysis points to fresh inflows into spot ETFs, reduced leverage, improved order book liquidity, and shifting options sentiment as indicators of a stabilizing market. Bitcoin ETFs saw choppy flows, while Ethereum ETFs posted roughly $200 million in net inflows. Bitcoin's futures open interest to market cap ratio is around 3.4%, suggesting the market isn't over-extended, while Ethereum's is higher at 10.8%. The report suggests institutions are re-entering the market, but conviction is still building, and consecutive weeks of net inflows are needed for a true Q1 bounce.

According to a CryptoSlate report, the crypto market shows early signs of a Q1 recovery following December's sell-off. Coinbase analysis points to fresh inflows into spot ETFs, reduced leverage, improved order book liquidity, and shifting options sentiment as indicators of a stabilizing market. Bitcoin ETFs saw choppy flows, while Ethereum ETFs posted roughly $200 million in net inflows. Bitcoin's futures open interest to market cap ratio is around 3.4%, suggesting the market isn't over-extended, while Ethereum's is higher at 10.8%. The report suggests institutions are re-entering the market, but conviction is still building, and consecutive weeks of net inflows are needed for a true Q1 bounce.