The cryptocurrency market has climbed roughly 22% over the past week, with major assets such as Bitcoin (BTC) and Ethereum (ETH) reaching multi-month highs.

Improvements across several demand indicators have accompanied the rally. However, each measure still has a caveat, suggesting the recovery has strengthened but has yet to receive broad confirmation.

Stablecoin Flows Move Toward a Net Inflow Shift

One sign of improving liquidity is emerging from stablecoin flows. Stablecoin netflows to exchanges indicate how much stablecoin liquidity is potentially available for trading. Sustained inflows can increase the pool of capital available to buy crypto, while outflows reduce that immediately available liquidity.

Analyst CW8900 said net inflows began to fall after April. Outflows dominated through the months after that, and BTC slid toward roughly $58,000.

That pattern has since reversed, according to the analyst. Outflows have shrunk, inflows have begun, and a full shift to a net inflow trend is approaching.

“As long as funds flow in, the market will maintain a bullish trend. And when the funds inflow trend stops, it will undergo a correction,”

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ETF Inflows Broaden Across Major Altcoins

Institutional demand has also picked up as the market recovered. On August 24, spot Bitcoin funds absorbed $337.56 million, while Ethereum products added $115.57 million, continuing a streak of inflows.

Smaller categories joined the move. Solana (SOL) funds drew $33.49 million, their largest daily total since December 15, 2025, per SoSoValue data. XRP (XRP) products took $13.82 million.

Those daily figures extend a week that BeInCrypto reported as the strongest for Bitcoin and Ethereum funds since October 2025.

However, analyst Darkfost measured that recovery against a much deeper hole. The analyst noted that the recent inflows have yet to offset the broader trend. ETFs remain net sellers for 2026, with their holdings down by roughly 92,000 BTC since the start of the year.

US Crypto Demand Drought Narrows but Stays Below Zero

The Coinbase Premium Index provides another test of the rally. The index measures the price difference between an asset trading on Coinbase Pro and Binance.

Positive readings indicate US buyers are paying up, while negative readings indicate the bid is fading. Both major assets have climbed toward zero. 

Ethereum sat at -0.004 and Bitcoin at -0.014, recovering from roughly -0.10 in mid-August. Yet, neither has crossed the line. 

CryptoQuant data shows both readings have stayed negative since early May. Moreover, history warns against reading too much into a single flip. The Bitcoin premium reached about 0.0027 in early May before declining again.

Taken together, the indicators show a market with improving liquidity, stronger ETF demand, and recovering US buying pressure. But with stablecoin flows only approaching a sustained inflow, ETFs still negative for the year, and Coinbase premiums below zero, the rally has not yet secured confirmation from all major demand measures.

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Source: BeInCrypto