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- Notable reduction in capital inflows into the cryptocurrency market has contributed to delay in altseason
- Tokens like BNB, AAVE are expected to maintain their bullish outlook despite the setback
The larger cryptocurrency market’s capitalization has been on a decline lately, dropping by 2.06% to $3.33 trillion. However, a broader analysis revealed a steeper fall of 18.33% – From $3.7 trillion in November to $3.28 trillion, on 24 December.
In the last 24 hours, the market’s decline has coincided with a 3.3% hike in trading volume, with figures for the same hitting $121.84 billion. This indicated that traders’ selling pressure has been backed by actual momentum.
Such downward market trends often influence altcoin performances, especially since these tokens typically follow the broader market’s direction. In fact, according to AMBCrypto’s analysis, the decline in capital inflows has played a critical role in the ongoing market downturn.
Liquidity flows see a significant downturn
According to Glassnode, there has been a notable decline in capital inflows into the cryptocurrency market – A sign of lack of active investment.
Data from the Aggregate Market Realized Value Net Position Change metric revealed that capital inflows, measured in USD, dropped from $134 billion on 10 December to $100 billion, at the time of writing.
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