According to well-known cryptocurrency analyst Ali Martinez, there’s been a significant decrease – over 56% – in the amount of money flowing into the crypto market during the last month. This suggests that the pace of crypto investment has noticeably decreased.
As per a recent post by renowned crypto analyst Ali Martinez, there has been a significant decrease in capital inflows. The figure dropped from a massive $134 billion to a comparatively smaller $38 billion within the last month.
In addition to his research results, Martinez also presented a graph illustrating the alteration in net position within the cryptocurrency market’s total accumulated value over time. A significant decrease in investments was noticeable around mid-December 2024 and lasting until early January 2025, following an exceptionally bullish November.
“This points to a significant reduction in investment activity,” he wrote.
A decrease in investments into the crypto market might indicate that investors are becoming less enthusiastic about digital assets, as was seen in previous months. This trend could potentially trigger a period of consolidation, often referred to as a ‘cooling off’ stage, during which prices typically fall. As per Martinez’s chart, prominent cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have historically followed the patterns of capital inflow.
Investment in the crypto market has seen a substantial decrease of about 56.70% within the last month, falling from approximately $134 billion to around $58 billion. This indicates a marked decrease in investing behavior.
— Ali (@ali_charts) January 13, 2025
Even though there’s a decrease in investments flowing into the cryptocurrency market, the total amount of stablecoins held (net position) stays consistent. This might suggest that some investors are choosing to put their money into stablecoins, a type of digital currency backed by assets or reserves, rather than traditional non-backed currencies due to increased confidence in their safety and stability.
On the contrary, this might imply that investors are merely biding their time, seeking the ideal moment to jump back into the market. For traders, a revival in cryptocurrency investments could potentially occur earlier than anticipated.
Based on information from a recent CoinShares report, a total of $585 million was invested into digital asset products during the first three days of the year 2025. Conversely, the final two trading days of 2024 experienced net withdrawals totaling $75 million.
In simple terms, even though investment activity decreased towards the year’s end, CoinShares research head James Butterfill stated that throughout 2024, investments flowing into digital asset products reached a new high – approximately four times greater than the previous record set in 2021.
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2025-01-13 11:36