Institutional demand for crypto investment products is rebounding after year-end tax selling, as Bitcoin and major altcoins remained stable following geopolitical developments in Venezuela and ahead of key U.S. economic data releases.
Exchange-traded fund (ETF) inflows into BTC, Ether (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) have picked up in early January, signaling renewed interest from institutional investors during the first full trading week of 2024, according to market analysts.
Venezuela Developments Raise Global Market Attention
Geopolitical tensions increased over the weekend after reports that the United States conducted a military operation in Venezuela, capturing President Nicolás Maduro and his wife. Explosions were reported in Caracas and surrounding areas, according to multiple accounts.
President Donald Trump stated that the United States would assume control of Venezuela’s oil industry. The announcement contributed to a decline in global energy prices, adding another layer of uncertainty for traditional markets.
Despite the scale of the developments, cryptocurrency markets showed limited reaction. Digital assets traded marginally higher during Monday morning trading in Asia, while U.S. and European equity markets remained closed and are expected to respond when trading resumes.
Crypto ETF Inflows Signal Renewed Institutional Demand
The rebound in crypto ETF inflows follows weeks of subdued activity driven by year-end tax-loss harvesting. Per SoSoValue data, U.S spot Bitcoin ETFs recorded a whopping $697.27 million in daily total net inflow, with their cumulative total net inflow reaching $57.78 billion as of Jan. 5.
U.S spot ETH ETFs also recorded inflows on Monday to the tune of $168.13 million while SOL and XRP ETFs saw over $ 40 million in daily total inflow. Analysts say the renewed inflows suggest institutions are reallocating capital as the new year begins.
Moreover, BTC led gains during early Asian trading on Monday, surpassing $94,500, before retreating slightly to $93,185 at the time of writing. ETH recorded multi-week gains, briefly pushing above $3,247 before pulling back $3,217 at the press time. Several major altcoins also posted gains, including XRP, DOGE, LINK, Stellar (XLM), Pepe (PEPE) and Hyperliquid (HYPE), reflecting broader participation across the market.
According to market data, total cryptocurrency market capitalization has risen above $3.28 trillion, its highest level since early December 2025, showing improving sentiment across digital assets.
Read also: Altcoins Outperform Bitcoin as Ethereum and Meme Tokens Post Strong Gains
Economic Data in Focus This Week
Market attention is now turning to a series of key U.S. economic data releases that could influence near-term price action.
Tuesday will bring the release of December’s ISM Manufacturing PMI, a closely watched indicator of U.S. manufacturing activity. On Wednesday, investors will receive December’s ADP Nonfarm Employment report alongside November’s JOLTS Job Openings data.
The week concludes with Friday’s U.S. Jobs Report and Consumer Sentiment data, both of which carry implications for monetary policy expectations. The labour market remains a central focus following the Federal Reserve’s decision to cut interest rates three times in the previous year amid signs of weakening employment conditions.
“Softening in the labour market has really given the Fed good cover to change their outlook about reducing rates,” Eric Kuby, chief investment officer at North Star Investment Management, told Reuters.
Analysts say the combination of rebounding ETF inflows, stable crypto prices, and rising market capitalization suggests cautious optimism among institutional investors. While geopolitical risks and economic data may drive short-term volatility, cryptocurrencies have so far shown resilience as traditional markets prepare to react to the weekend’s events.
