In the last 30 days, the total market cap of the cryptocurrency market has shrunk by around 9.577%. A recent post by crypto analyst Ali suggests that capital inflows in the crypto market have dropped by at least 56.70% in the last month.
Sharp Decline
According to Ali’s post, the capital inflows in the market have decreased sharply from $134 billion to just $58 billion. This drop indicates that the interest of crypto investors in the market has considerably come down.
What Does This Mean for Investors?
The trend suggests that cryptocurrency investors are currently hesitant to enter the market. There is reason to believe that this hesitation may create sharp price fluctuations. In the last 30 days, almost all the top ten cryptos have shown unimpressive performances. Bitcoin has slipped by 7.3%, Ethereum by 17.7%, BNB by 6.0%, Solana by 18.5%, Dogecoin by 19.4%, and Cardano by 15.8%.
Latest Crypto Market Trends
On January 6, the crypto market touched a monthly peak of $3.55T. Between January 7 and 9, the market sharply plummeted by 9.97%. Though between January 10 and 11 the market showed a small attempt to recover from the aforementioned correction by pushing the price from $3.16T to $3.25T, since January 12, the market has decreased by 1.8%. Currently, the market stands at at least 9.88% below its monthly peak.
The 56.70% drop in the inflows signals a shift in investor sentiment. Whether it is a short-term hesitation or part of a longer trend remains to be seen.
