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

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.