Matrixport: In the current cryptocurrency market, the impact of capital flow on prices is stronger than fundamentals

Matrixport released a chart today stating, "From a pricing logic perspective, the main driver of cryptocurrency prices remains the inflow of incremental funds, rather than changes in user numbers or application scenarios themselves. This is particularly evident in the Ethereum ETF: during a continuous inflow of nearly $10 billion, the ETH price rose from about $2,600 to $4,500; however, when the inflow slowed down, the price quickly retraced its previous gains. In an environment where new real demand is relatively limited, both Ethereum and the broader cryptocurrency market remain highly sensitive to marginal changes in fund flows.

In contrast to the last bull market, where the narrative was more centered around "adoption, revenue, and network growth," and funds were willing to pay a premium for these expectations; in this cycle, price performance is largely dependent on where the funds flow, how quickly they enter the market, and when the funds suddenly stop."