Cryptocurrency markets traded in a narrow range this week as investors remained cautious ahead of key U.S. inflation and growth data, according to Nexo analyst Iliya Kalchev. Bitcoin hovered near $67,750 while Ethereum remained capped below $2,000, reflecting selective positioning rather than broad risk-taking amid macro uncertainty.

Recent hawkish signals from the Federal Reserve's January meeting minutes have weighed on risk assets, reinforcing expectations that rate cuts could be delayed. Geopolitical tensions, particularly rising uncertainty surrounding U.S.-Iran relations, have boosted safe-haven flows into the dollar while limiting upside in liquidity-sensitive assets like crypto. U.S. Bitcoin ETFs recorded about $165 million in net outflows, while Ethereum ETFs saw roughly $130 million leave the market, mirroring broader reports of institutional caution.

Bitcoin continues to consolidate following its early-February correction, even as network fundamentals strengthen. Mining difficulty has climbed sharply and hashrate has rebounded, suggesting underlying resilience despite price consolidation. Market watchers say the asset remains sensitive to macro signals, particularly inflation data that could shape Fed policy expectations. traders are focusing on U.S. Core PCE inflation and GDP figures, which could determine whether digital assets break out of consolidation or remain range-bound.