The cryptocurrency market saw a significant shift last week as $644 million in inflows ended a five-week streak of outflows, signaling renewed investor confidence in digital assets. Leading the charge was Bitcoin (BTC), which received an impressive $724 million, reversing a $5.4 billion outflow trend from previous weeks. This shift in capital flows highlights Bitcoin’s continued market supremacy, as it remains a favorite for institutional investors.

Bitcoin’s resilience in the face of market volatility is becoming increasingly evident. Despite recent price fluctuations, the cryptocurrency has managed to maintain a dominant position in the market, holding steady above 60% of market dominance. This figure is similar to the dominance observed before the recent elections, illustrating that Bitcoin has retained investor confidence. Even as Bitcoin retraced from an all-time high of $109,000 to a low of $78,000, its recovery from this significant drop is a testament to the strong conviction that exists within the market.

The $724 million in inflows into Bitcoin not only signals sustained institutional interest but also reinforces its dominant position among digital assets. Bitcoin’s ability to attract such large institutional investments reflects its solid fundamentals and the growing belief that the cryptocurrency could reach new all-time highs in the future. While short-term price fluctuations have occurred, the long-term outlook for Bitcoin remains bullish, especially with the current upward momentum.

However, Bitcoin’s dominance is not mirrored across the broader crypto market. Ethereum (ETH), for example, has seen $86 million in outflows, with consecutive weeks of ETF withdrawals. This underperformance of altcoins further underscores Bitcoin’s prevailing position in the market. Despite Ethereum’s continued importance within the crypto ecosystem, the divergence in capital flows between Bitcoin and other altcoins suggests that institutional investors are favoring Bitcoin for now.

The influx of institutional capital into Bitcoin comes at a time when the broader market is facing uncertainty. With the second quarter of 2025 approaching, macroeconomic pressures are mounting. President Trump’s reciprocal tariffs, which take effect on April 2, could further complicate market conditions. Historically, Bitcoin has struggled during periods of heightened macroeconomic uncertainty, with price corrections often leading to significant drops in value. Bitcoin’s price has already tested the $80,000 support zone twice and could potentially dip back to this level if market conditions worsen.

Despite these challenges, Bitcoin’s long-term market structure and strong institutional demand could provide structural support. On-chain metrics and continued inflows suggest that Bitcoin could navigate through any short-term volatility. However, a reversal in capital flows could lead to a slowdown in Bitcoin’s rally. If investor sentiment shifts, Bitcoin could face a pullback to the $80,000 level, with a deeper correction remaining a real possibility.

In conclusion, Bitcoin’s dominance remains intact, and its continued appeal to institutional investors positions it for further gains. The $644 million in inflows, coupled with $724 million directed specifically at Bitcoin, is a positive sign for the cryptocurrency. However, should the inflows reverse or if macroeconomic pressures intensify, Bitcoin could face significant challenges. The coming months will be crucial in determining whether Bitcoin can maintain its current momentum or if a retracement is inevitable. With Bitcoin’s resilience and strong investor backing, it remains well-positioned to weather the storm, but it faces ongoing risks that could threaten its growth.