Glassnode data revealed a remarkable capital outflow in the cryptocurrency market. This last dynamic is happening at a pace not seen especially since the deep bear market period of 2022. The rapid decline in net position change stands out clearly on both Bitcoin and Ethereum sides.
Net Capital Flows in Bitcoin and Ethereum are in Negative Zone
The “Total Market Realized Value Net Position Change” chart prepared by Glassnode shows that new entries into the cryptocurrency market have decreased rapidly in the last 30 days. In particular, the net position change in Bitcoin and Ethereum turning sharply negative was seen in previous cycles, usually when the market entered a late correction or bear phase. In this latest wave, investors’ tendency to reduce risk or move their capital to other assets stands out.
Fragility Continues in Liquidity Indicators
Another important detail in the data is that although the Bitcoin price is still well above previous lows, capital flows exhibit a stressed market behavior. This indicates that the underlying liquidity is constantly withdrawn, especially while institutional actors support prices in the market. As in previous cycles, prolonged periods of negative capital flows mark periods when selling pressure in the market becomes persistent.
Stablecoin Growth Stalled
A notable change in market dynamics is taking place on the stablecoin side. On average, stablecoin balances increase when the market enters a recovery period, which is interpreted as a sign of new inflows. However, in the current situation, with the slowdown in stablecoin net position change, it appears that there is no significant new capital inflow to the market. This picture implies a fundamental lack of liquidity to sustain upward movements.
According to Glassnode data, the net capital flow turning negative and the inflow of new money stopping makes it difficult for strong rises to find ground in the crypto market. In particular, the stagnation in stablecoin growth shows that the mobility of investors has decreased. Overall, market participants remain on the lookout for new opportunities.
According to experts, while volatility has historically increased during periods of long-term capital outflow, it may take time for the market to find balance again. Considering the latest data, the current structure of the market indicates an environment in which capital is largely transferred out.
As a result, negative capital flows in Bitcoin and Ethereum and stagnation on the stablecoin front are considered an important signal that market conditions remain weak. In an environment where capital inflows do not increase in the short term, upward movements in the market are not expected to be permanent.
