Cryptocurrencies maintain a strong position as macroeconomic influences intersect with pre-Consumer Price Index positioning strategies.

In a post exclusive for paying subscribers, the current state of the cryptocurrency market is under the spotlight, with Bitcoin and Ethereum at significant price zones. This post, accessible only to those who have subscribed, offers a deep dive into the market's dynamics.

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The post highlights that despite potential short-term volatility, on-chain accumulation indicates that long-term demand for both Bitcoin and Ethereum remains strong. This is particularly evident in the case of Ethereum, as its price has broken above $4000, contributing to a broad risk-on tone.

One of the key findings of the post is the institutional shift towards Ethereum. Major institutional investors, including U.S. funds influenced by SEC regulatory clarity and Chinese institutions, have significantly increased their positions in Ethereum in the past month. Ethereum now constitutes about 60% of institutional crypto portfolios compared to Bitcoin’s 15%, driven by Ethereum’s technological upgrades and staking yields. Meanwhile, Bitcoin ETFs have seen outflows amid regulatory scrutiny, but retail investors still favour Bitcoin for its "digital gold" appeal.

This institutional shift towards Ethereum, especially by Chinese asset managers and hedge funds seeking exposure to DeFi and smart contracts, positions these institutions to potentially influence market developments around key events like the upcoming Consumer Price Index (CPI) day.

The post also discusses the elevated unrealized profits, which could potentially lead to profit-taking risk. However, ETF flow resilience and on-chain accumulation suggest that structural demand remains intact. On-chain and derivatives data indicate seller exhaustion and measured re-leveraging, which could signal a stabilizing market in the near term.

Moreover, the MVRV (Market Value to Realized Value) ratio of ETFs is 2.43, indicating elevated unrealized profits. This suggests that investors may be holding onto their positions, further emphasizing the long-term demand.

The post concludes by reiterating that the CPI is the critical short-term trigger for the cryptocurrency market. As such, subscribers are encouraged to stay informed and prepared for potential market fluctuations in the coming days.

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Cryptocurrencies maintain a strong position as macroeconomic influences intersect with pre-Consumer Price Index positioning strategies.