Between February 1 and 7, the cryptocurrency market sharply plummeted by nearly 11.65%. An X post by renowned crypto technical and on-chain analyst Ali Martinez notes that the crypto market has seen a notable capital inflow of over $6 billion in the past week. It appears that the inflow has helped the market regain its lost momentum. In the last seven days, the market has experienced a growth of 0.63%. Meanwhile, another crypto expert, identified as MR, notes that the inflow needs to be sustained to have a real impact.
Crypto Inflow: Is It a Positive Sign?
Ali states that the crypto market has witnessed an impressive capital inflow of over $6 billion in the past week. With this statement, he attempts to portray that the crypto market has regained its momentum.
It is clear that lately, the market has made a strong effort to recover from the early February correction.
Sustaining Liquidity: The Key to Long-Term Growth in the Crypto Market
MR’s response to Ali’s post suggests that just one week of increased investment does not guarantee long-term growth. The response highlights the importance of consistent liquidity. It also advises shifting focus from news headlines and social media trends to actual trading volume. It even emphasises the significance of closely monitoring the movements of crypto whales.
Solid inflow, but let’s not get carried away. $6B’s a blip if liquidity isn’t sustained. Watch for real volume shifts, not just headlines. Remember, spot volume > Twitter hype. Momentum’s fragile unless fundamentals align. Keep eyes on whales, they’re the real movers. 📈
— MR. (@MISTERexc6) February 11, 2025
Crypto Trading Volume Analysis
In the last seven days, the trading volume of the crypto market has seen a change of +0.00001218%. Currently, the trading volume of the market stands at $113,976,545,325. The 24-hour trading volume of BTC remains at $34,379,058,053; Etheruem at $17,070811,740; XRP at $3,481,390,326; Solana at $4,580,341,418; and BNB at $1,115,257,309.
In conclusion, the recent $6 billion inflow into the crypto market is a positive sign, but experts warn that sustained liquidity and strong fundamentals are key for long-term growth. While Bitcoin and Altcoins show signs of recovery, crypto investors should focus on real trading volume and market trends.
Read the full article here