Crypto markets enter the second quarter battered but structurally sounder than price charts alone suggest, according to Nexo's latest market dispatch.
Bitcoin posted its worst Q1 decline since 2018, dragged down by a conflict that disrupted the Strait of Hormuz, renewed tariff escalation, and the collapse of expectations for Federal Reserve rate cuts. Yet the selloff is absorbing faster than in past cycles. On the weekly chart, a double-bottom formation has emerged; on the daily, price is testing the upper Bollinger Band with an RSI approaching overbought and no signs of exhaustion.
What matters most for momentum, though, is flows. Bitcoin and Ethereum ETFs reversed a sustained multi-week net outflow streak in early March, and the trend has held: April's trailing seven-day inflow is running above $500 million. Notably, while gold ETFs bled nearly $11 billion in outflows following the outbreak of the Iran war, Bitcoin ETFs continued to attract capital.
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