The market is on the verge of renewal: Analysis of the current liquidity inflow
We are observing a significant influx of fresh liquidity into the cryptocurrency market. This process, judging by the dynamics of on-chain metrics, is systemic in nature and affects both large Bitcoin wallets and second-tier altcoins.
An analysis of fund movements shows that the bulk of capital is coming from traditional financial instruments, which is confirmed by the growing correlation with the S&P 500 index. However, unlike previous cycles, we are now seeing a more selective approach: investors prefer assets with a clear fundamental rationale rather than simply speculative coins.
Key indicators:
- The volume of stablecoins on exchanges has increased by 12% over the past week, creating a powerful "dry powder" for purchases.
- The number of active addresses on the Ethereum network has increased by 8%, signaling a rise in retail interest.
- Bitcoin's market share (BTC dominance) has stabilized at 52%, indicating no panic flight into "safe" assets.
It is important to understand that such an influx often precedes volatility. The market accumulates liquidity in order to then sharply redistribute it. In the current macroeconomic conditions (expectations of Fed policy easing and declining bond yields), cryptocurrencies look like an attractive tool for hedging inflation risks.
My professional view: Do not be fooled by short-term growth. We are in an accumulation phase, and the true direction of the trend will only become clear after a breakout of key resistance levels. For now, the "buy the rumor, sell the news" strategy remains relevant. I recommend closely monitoring open interest data on futures markets—this will provide a more accurate picture of the sentiment among major players.