A clear recent market change is that the overall funding size has contracted compared to its high point.
In terms of the total market capitalization of the crypto market, over the past few months the amount of market capital has kept declining. This hasn’t only affected the altcoin market—$BTC and the broader market have also been impacted.
When total market funds decrease, the trading environment changes as well. In the past, when the market was rising, many assets could receive momentum from available capital; but at the current stage, the market lacks sustained incremental inflows, so many uptrends are more likely to turn into short-term fluctuations.
This is also why many projects have recently seen sharp rises followed by pullbacks, and the market’s profitability/“making money” effect has become noticeably weaker.
Going forward, what’s truly worth paying attention to is when market funds will flow back in again, and which directions can attract new capital first.
#BTC
In terms of the total market capitalization of the crypto market, over the past few months the amount of market capital has kept declining. This hasn’t only affected the altcoin market—$BTC and the broader market have also been impacted.
When total market funds decrease, the trading environment changes as well. In the past, when the market was rising, many assets could receive momentum from available capital; but at the current stage, the market lacks sustained incremental inflows, so many uptrends are more likely to turn into short-term fluctuations.
This is also why many projects have recently seen sharp rises followed by pullbacks, and the market’s profitability/“making money” effect has become noticeably weaker.
Going forward, what’s truly worth paying attention to is when market funds will flow back in again, and which directions can attract new capital first.
#BTC