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Crypto Market Recovers After $6B Inflow, But Experts Warn of Volatility

Published by
Vignesh S G

Between February 1 and 7, the cryptocurrency market took a sharp hit, plunging nearly 11.65%. Just as investors started to brace for a deeper downturn, something unexpected happened – over $6 billion flowed back into the market in just one week. According to well-known crypto analyst Ali Martinez, this sudden capital inflow has helped the market regain some lost ground, pushing it up by 0.63% over the past seven days.

Another crypto expert, MR, warns that one week of inflows isn’t enough to keep the market on solid ground. Could this rally fade just as quickly as it appeared?

Let’s break down the numbers and what they really mean for the road ahead.

Market Cap Drops, Then Bounces Back

At the start of February, the total crypto market cap stood at $3.45 trillion. By February 7, it had fallen sharply to $3.09 trillion, marking a significant 11.65% decline in just a week. However, since February 8, the market has started recovering, climbing 2.91% to reach its current value of $3.18 trillion.

This rebound shows that the market is attempting to recover from its early February losses, but whether this trend will continue remains uncertain.

Focus on Liquidity Over Hype

MR’s response to Ali’s post highlights a key point – short-term inflows don’t guarantee long-term stability. He advises investors to pay less attention to news headlines and social media trends and instead focus on real trading volume. He also stresses the importance of tracking large crypto whales, whose trades can significantly impact market movements.

Crypto Trading Volume Analysis

In the past week, the crypto market’s trading volume has seen a minor increase of +0.00001218%. The total trading volume currently stands at $113.97 billion. Here’s a breakdown of major assets:

  • Bitcoin (BTC): $34.37 billion
  • Ethereum (ETH): $17.07 billion
  • XRP: $3.48 billion
  • Solana (SOL): $4.58 billion
  • BNB: $1.11 billion

While a $6 billion capital inflow is a positive sign, experts caution that lasting growth depends on strong liquidity and market fundamentals. Although Bitcoin and altcoins are showing signs of stability, investors should focus on actual trading volume and whale movements rather than relying on short-term rallies.

Money is flowing back in! What happens next could define the market’s trajectory.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

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