Cryptocurrency market flows fall by more than 50% by the end of 2024: analyst


Renowned cryptocurrency analyst Ali Martinez found that cryptocurrency market inflows fell by more than 56% in the past month, indicating a slowdown in investments in cryptocurrencies.

According to the last X mail According to senior cryptocurrency analyst Ali Martinez, capital inflows fell from $134 billion to just $38 billion over the past month.

Along with his findings, Martinez shared a chart displaying the combined value of the net value position change achieved within Crypto market. The sharp decline in inflows was particularly evident in mid-December 2024 to early January 2025 after a particularly bullish November.

“This indicates a significant decline in investment activity,” he wrote.

Decreased inflows into the cryptocurrency market may indicate that investors are less willing to invest in digital assets, compared to previous months. This may lead to a consolidation phase, also known as a “cooling off” period where prices tend to fall. According to Martinez's chart, major cryptocurrencies like Bitcoin (Bitcoin) and Ethereum (Ethereum) They have a habit of following capital flow movements.

Although inflows into the cryptocurrency market have decreased,... Stable coin The net position remains steady, which may indicate that some investors feel more confident putting their money into stablecoins rather than unbacked currencies.

However, this may mean that investors are simply waiting for the right opportunity to enter the market again. Traders may see a rebound in cryptocurrency investments sooner than they think.

According to data released by the latest CoinShares a reportThe market saw $585 million inflow into digital asset products during the first three days of 2025. However, the last two days of trading in 2024 saw net outflows of $75 million.

Despite a decline in investment activity by the end of the year, James Butterville, head of CoinShares research, said inflows over the course of 2024 into digital asset products reached a record high, about four times higher than the previous record set in 2021.



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