Crypto Market Inflows Drop 56% as Bitcoin Prices Slip Below $93,000
The crypto market is under pressure, with Bitcoin and altcoins experiencing declines of 1-5% in the last 24 hours. Total inflows have dropped by over 56% in the past month, falling from $134 billion to $58 billion, according to data from Glassnode.
- Crypto trading volumes are at their lowest since November 4, indicating “trading paralysis” due to investor fear and uncertainty.
- Bitcoin's price has decreased by 1.2%, dropping below $93,000. It is currently around 7% above the short-term holder cost basis of $88,135.
- If Bitcoin stabilizes below this threshold, it may reflect declining sentiment among short-term investors.
Potential Impact of Donald Trump's Inauguration on Crypto Market
Market analysts speculate that Donald Trump's inauguration could initiate a rally in the crypto market due to anticipated regulatory changes. However, NYDIG warns that significant policy shifts might take time to implement.
- Greg Cipolaro of NYDIG indicated that while optimism exists for quick changes, some adjustments will require time.
- Key appointments and legislative actions related to stablecoins and SEC regulations may face delays.