Meltem Demirors, a seasoned figure in the cryptocurrency space and a partner at Crucible Capital, has issued a warning regarding potential significant headwinds for the crypto market, citing anticipated capital outflows.
In a recent communication on the social media platform X, Demirors highlighted a prevailing sense of apathy and complacency within the market. She pointed to reduced Bitcoin trading volumes compared to pre-halving levels and a notable decrease in implied volatility within the options markets.
This observation suggests a diminished appetite among traders for placing leveraged bets on the leading digital currency.
Market Outlook and Potential Pressures
Looking ahead, Demirors anticipates a challenging phase for the market. She noted that while 2024 saw substantial inflows from various sources, including Exchange Traded Funds (ETFs), the perceived ‘Trump effect’ (with Donald Trump currently serving as US President), and consistent strategic bids, the current overall environment appears more subdued.
With asset movements anticipated from the defunct exchange Mt. Gox and potential downward pressure from selling, she expects a period characterized by more sideways or “choppy” market action rather than strong directional trends.
Understanding Recent Price Movements
Despite the recent uptick in cryptocurrency prices, Demirors views it primarily as a “relief rally.” In her assessment, this upward movement has been driven largely by retail investors and algorithmic trading strategies, rather than indicating a fundamental shift in market strength.
She maintains a cautious outlook for the future, pointing to substantial weekly token unlocks entering the market. A key concern is the perceived lack of significant, sustained buying demand needed to absorb these potential outflows effectively.
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