Crypto Expert Warns of Market Struggles Ahead Amid Looming Outflows

Crypto veteran Meltem Demirors, partner at Crucible Capital, is warning that the crypto market could face significant challenges ahead due to expected outflows.

In a recent statement on social media platform X, Demirors highlighted a sense of apathy and complacency in the market, pointing to a decrease in Bitcoin trading volumes compared to pre-election levels and a sharp drop in implied volatility in the options markets.

This suggests a lack of interest from traders in making leveraged bets on Bitcoin.

Looking ahead, Demirors predicts a rough period for the market, noting that while 2024 saw significant inflows from sources like ETFs, the Trump Pump, and persistent strategic bids, the overall environment is now more subdued.

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With coins from Mt. Gox moving and little forced selling pressure, she expects a period of sideways market action.

Despite the recent uptick in crypto prices, Demirors views it as a “relief bounce” driven primarily by retail investors and algorithmic traders.

She remains cautious about the future, pointing to the weekly unlocking of $800 million in tokens and the absence of significant buying demand to absorb these outflows.

Alexander Stefanov