Digital assets remain stable as markets weigh inflation expectations and geopolitical tensions, according to Nexo.

Cryptocurrency markets moved within a tight range late in the week as traders remained cautious ahead of important U.S. inflation and growth releases. According to Nexo analyst Iliya Kalchev, broader macro uncertainty continues to guide investor sentiment.

Bitcoin held just above the $68,000 mark, while Ethereum struggled to push past $2,000, signaling selective positioning rather than a broad return to risk appetite. A more guarded macro tone has emerged in recent days, with hawkish cues from the Federal Reserve’s January meeting minutes pressuring risk assets and strengthening the view that interest rate cuts may come later than previously anticipated.

Geopolitical concerns have further shaped market behavior. Heightened tensions involving the U.S. and Iran have driven demand for traditional safe havens such as the U.S. dollar and gold, while capping gains in liquidity-driven assets like cryptocurrencies.

Kalchev highlighted that U.S.-listed Bitcoin ETFs posted around $165 million in net outflows, and Ethereum ETFs saw roughly $130 million withdrawn. These flows reflect a broader sense of institutional caution as investors recalibrate exposure amid persistent macro volatility.

Bitcoin remains in a consolidation phase following its early-February pullback, even as underlying network metrics improve. Mining difficulty has risen notably, and hashrate levels have recovered, pointing to structural strength despite muted price action. Still, analysts note that the asset remains highly responsive to macro signals—particularly inflation data that could influence Federal Reserve policy expectations.

Outside of crypto, financial markets have displayed uneven risk appetite. Gold is trading near record highs, and the dollar is on course for a strong weekly advance as investors hedge against geopolitical instability and interest rate uncertainty.

Looking ahead, market participants are closely watching upcoming U.S. Core PCE inflation data and GDP figures. These releases could determine whether digital assets break out of their current consolidation range or continue moving sideways. While regulatory progress on stablecoin legislation may serve as a longer-term structural driver, Kalchev emphasized that near-term price movements will likely remain tied to macro developments and investor positioning.

Sources: Investing