The cryptocurrency market has experienced a significant decline in capital inflows, with a 63.3% drop since December 2024. Bitcoin, Ethereum, and stablecoins have all been affected, indicating decreased market participation and liquidity. The net positions of BTC and ETH saw a sharp decline, signaling a reduction in investor interest. Similarly, stablecoin net positions also saw a decline, indicating reduced confidence in liquid assets. The overall capital inflows have been consistently decreasing, with BTC and ETH dominating the inflows. Stablecoins have followed the downward trend as well. This contraction in crypto activity suggests a cautious investor sentiment and has potential long-term implications for liquidity and investor behavior in the cryptocurrency market.



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