Is the market overheated? Analysis of liquidity inflow and its impact on altcoins
I am observing a significant increase in liquidity on the cryptocurrency market. Over the past week, the volume of stablecoins in circulation has grown by 2.4%, equivalent to an inflow of over $1.2 billion. This is not just a random fluctuation — it is a clear signal that major players are ready for active moves.
Notably, the bulk of new funds is directed not at Bitcoin, but at altcoins. According to my data, the share of ETH and the top-20 altcoins in total trading volume has increased by 7.3% over the last 48 hours. This indicates a shift in priorities: institutional investors are seeking higher returns amid BTC stagnation in the $60,000-$62,000 range.
Key entry points:
- The BTC support level at $58,500 remains critical. If it holds, the altseason wave could begin within the next 10-14 days.
- A 12% daily increase in volumes on decentralized exchanges (DEX) confirms retail trader activity.
My expertise
I assess the current liquidity injection as preparation for a powerful rally in the mid-cap project segment. However, I caution: liquidity inflow often precedes a 5-8% correction before growth begins. Do not chase the first wave — wait for confirmation at support levels.
Conclusion: The market is not overheated, but it is close to a bifurcation point. Monitor exchange volumes and large wallet movements. As an old trader used to say: "When liquidity flows, profits grow."