Is there still new money coming into this market?
The chart below shows the weekly statistics of capital flows in cryptocurrency assets (in millions of dollars). The horizontal axis represents the weeks of 2024/2025, while the vertical axis displays the amount of capital flow, ranging from -10 million to 50 million dollars.
Last week, the crypto market experienced a net inflow of 48 million dollars, but the actual situation was more tumultuous than the numbers suggest. At the beginning of the week, capital inflows surged, but in the latter half of the week, due to macroeconomic data (mainly non-farm payrolls) exceeding expectations, market sentiment changed abruptly, leading to a significant outflow of funds.
Among them, Bitcoin (BTC), as always, performed exceptionally, attracting up to 214 million dollars in capital inflow, which fully reflects investor confidence. However, Ethereum (ETH) faced challenges, experiencing an outflow of 256 million dollars, possibly due to a change in market sentiment or holders taking profits; in any case, ETH has been underperforming in recent years.
Do you think there will still be new money coming into this market? What will be the next trigger point for net capital inflows?
