The cryptocurrency market has recently experienced a period of stagnation, with capital inflows shifting to neutral or negative levels since April. This trend aligns with the slowdown in Bitcoin and Ethereum capital inflows, reflecting growing uncertainty in the market. Despite recent surges in volatility, Realized Volatility has remained consistently low, with liquidity across the digital asset market reaching historical lows.

According to Glassnode, the market is currently in a historically low volatility environment, which could be a precursor to heightened volatility down the road. The total USD volume of BTC changing hands is around cycle lows of $2.44 billion per day, returning to October 2020 levels.

The market is experiencing minimal profits or losses, indicating that most coins being traded are roughly at the same price as when they were acquired. However, periods of low volatility are often followed by periods of higher volatility in financial markets, suggesting that the current market condition may lead to increased volatility in the future.

In the meantime, long-term HODLers remain steadfast, with the supply held by this cohort reaching a new peak of 14.74 million BTC. On the other hand, the supply held within the short-term cohort, representing the more active portion of the market, has plunged to the lowest level since 2011.