As we predicted in the last few weeks’ Crypto Crisp, the crypto market has been relatively stable in recent weeks. However, things are beginning to shift.

During a speech in San Francisco on Friday, Federal Reserve Chairman Jerome Powell mentioned that robust economic growth in the US allows Federal Reserve officials to take their time with interest rate cuts. His remarks were slightly more cautious about the potential for rate cuts than the market had hoped for. Despite this, the crypto market showed a brief, indifferent reaction before swiftly reverting to its previous state. This lack of concern from a market that’s usually highly sensitive to macroeconomic factors, including interest rates, suggests it might be gearing up for a rise.

Over the past week, we have seen a positive turn in the net flow of Bitcoin spot ETFs, although it has not reached the heights seen in early March. Coupled with decreasing exchange balances, these signs suggest a positive trend. Yet, the rapid increase in open interest in the futures market for Bitcoin and Ethereum, with the latter hitting a record high last week, has us on edge. Despite this, we still lean towards the possibility of a market upswing, but this development signals potential for greater volatility ahead.