Investors are advised to approach blockchain investments with caution, increasing their risk awareness amid the current market volatility.

Key pro-crypto policy changes are anticipated in the early days of Donald Trump's presidency, which could further impact the market dynamics.

Bitcoin ETFs currently hold a total of approximately 1.13 million BTC, valued at around $108.85 billion, but experienced a significant weekly outflow of over 8,200 BTC, equating to nearly $800 million.

In contrast, Ether ETFs have seen a total net inflow of $2.41 billion as of mid-January 2025, with Ethereum trading at $3,228, reflecting a 2% increase.

For Ethereum to show signs of recovery, it must break through the resistance level of $3,730, although experts suggest that a surge past $5,000 may be delayed despite optimism for new all-time highs in 2025.

Despite current bearish sentiments, analysts maintain a long-term bullish outlook for both Bitcoin and Ethereum, with expectations of continued institutional interest in 2025.

The cryptocurrency market is currently facing corrections, driven by negative reactions to macroeconomic data and a hawkish outlook from the U.S. Federal Reserve.

Technical indicators for Bitcoin and Ethereum suggest a neutral to slightly bearish momentum, with Bitcoin's Relative Strength Index (RSI) at 45 and Ethereum's at 48.

Analysts suggest that a dip in Ethereum below $3,000 could present a buying opportunity, while a breakdown below $3,225 may lead to a decline towards its 200-day moving average.

Speculation is growing that Bitcoin spot ETFs could soon surpass physical gold ETFs in asset size, indicating a significant shift in investment perceptions.

The ongoing outflows from cryptocurrency ETFs have raised questions about the future direction of the market, as investors await clearer signals before making major investment decisions.

BlackRock's iShares Bitcoin Trust has emerged as a dominant player in the market, attracting $40.8 billion in inflows, nearly three times more than its closest competitor.