Crypto ETF Inflows Reach 2026 High, Fear & Greed Breaks Above 50: Is Market Recovery Underway?

Source: CryptoDaily Original Title: Crypto ETF Inflows Reach 2026 High, Fear & Greed Breaks Above 50: Is Market Recovery Underway? Original Link:

ETF Inflows Signal Institutional Re-engagement

Crypto markets showed renewed strength on January 13, as exchange-traded fund (ETF) inflows and improving sentiment indicators pointed to a shift in investor behavior. Total net inflows into crypto ETFs reached $883 million, surpassing the previous 2026 high of $865 million recorded on January 5.

The fresh peak in ETF net flows suggests institutional investors are returning to the market after a period of consolidation and tax-driven selling earlier in the year. The $883 million inflow marks the strongest single-day demand for crypto ETFs in 2026 so far, reinforcing the role of regulated investment vehicles as a primary channel for institutional exposure.

Adding to this narrative, a major investment firm disclosed the purchase of over 13,000 BTC at an average price of $91,519, a transaction valued at approximately $1.25 billion. The acquisition increased the firm’s total Bitcoin holdings to 687,410 BTC, further underlining long-term conviction among large capital allocators despite recent volatility.

Sentiment Turns Constructive as Key Levels Break

Market sentiment indicators are also shifting. The Crypto Fear and Greed Index has moved above the neutral 50 level, reflecting a transition from cautious positioning toward moderate risk-taking. Historically, moves above this threshold often coincide with improving liquidity conditions and stronger follow-through in price action.

Bitcoin’s price structure supports this change in sentiment. BTC broke above its key resistance at $94,043, opening the door for momentum-driven flows. Over the past 24 hours, the broader crypto market advanced approximately 3%, extending its monthly gain to 5.22%.

Technical Indicators Point to Momentum, With Caveats

From a technical perspective, the total crypto market capitalization has reclaimed its 7-day simple moving average at $3.14 trillion. Momentum indicators reflect strong bullish conditions: the MACD histogram turned positive with a $16.98 billion reading, while the relative strength index (RSI) reached 75.97, signaling overbought territory.

Short liquidations further amplified the move. Bitcoin alone saw a 468% surge in short liquidations, indicating that bearish positions were aggressively unwound as prices pushed higher. These forced buybacks contributed to short squeezes, accelerating gains across major assets.

Recovery or Temporary Rebound?

While the data points to renewed institutional confidence and improving sentiment, the market’s overbought technical conditions suggest caution in the near term. Sustained recovery will likely depend on continued ETF inflows, stable macro signals, and the market’s ability to hold above recently reclaimed support levels.

For now, the combination of record ETF inflows, large-scale Bitcoin accumulation, and easing macro headwinds suggests that the market may be transitioning from a corrective phase into a more constructive recovery trend.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.