Bitcoin and Ethereum have spent the past few weeks moving like assets caught between two powerful forces. On one side, institutional demand has returned through Spot ETFs, treasury purchases, and dip-buying from larger investors. On the other side, profit-taking and heavy derivatives positioning keep turning rallies into sudden pullbacks.

ETF Demand Is Slowly Lifting Bitcoin And Ethereum

The crypto market has not been moving in a clean straight line. Bitcoin has pushed close to the $80,000 level more than once in the past week, only to lose momentum around $79,000. Ethereum has been following these moves, but with its own ETF flow and positioning pressure.

The strongest reason Bitcoin and Ethereum have been rising is the return of institutional inflows. Spot Bitcoin ETFs have been on a strong inflow streak in April, with data indicating more than $2.2 billion in net inflows between April 14 and April 24. Spot Bitcoin ETFs pulled in $823.7 million from April 20 to April 24, while Ethereum ETFs attracted about $155 million over the same week.

That helps explain why Bitcoin was able to rebound strongly from its earlier March range in the mid-$60,000s and move back near $78,000 to $80,000. Bitcoin recently came close to $80,000, reaching around $79,475 over the weekend before reversing, showing that sellers are still active.

A War That Crypto Cannot Ignore

The single biggest driver of crypto volatility in 2026 has been a conflict thousands of miles from any blockchain. The US-Iran conflict has been the biggest factor in how the cryptocurrency market has been facing mounting pressure.

The sudden onset of military conflict in February delivered an immediate and severe shock that pushed cryptocurrencies to their lows. However, earlier in April, Bitcoin jumped to an 11-week high in light of easing US-Iran tensions and talks of reopening the Strait of Hormuz.

As it stands, US President Donald Trump’s national security team is reviewing an Iranian peace plan to halt the war and open the Strait of Hormuz, and Iran has offered to end its chokehold on the strait if the US lifts its blockade and sanctions on the country.

Bitcoin and Ethereum price fluctuations have largely tracked these ups and downs and worries over rising oil prices. An ongoing US naval blockade and Iran continuing to seize ships suggest, however, that a reopening of the Strait of Hormuz is still far off.

The third force behind the sharp swings is leverage, as crypto markets are heavily influenced by derivatives. For instance, the recent Bitcoin rally to $79,000 caught many traders off-guard, and over $200 million worth of short positions were liquidated. Buying pressure on the Bitcoin derivatives side has yet to simmer down, as on-chain data shows BTC net taker volume recently surged to around $145 million.

Ethereum has also seen aggressive derivatives activity. Recent data showed ETH futures open interest jumping 26% to about $25.4 billion. Ethereum buyers are also at their most aggressive buying spree phase since early 2023.