Crypto’s Shifting Tides: Capital Outflow Fuels Market Volatility

Crypto’s current phase is characterized by a surge in trading volume and outflows of capital, marking a transitional period. In the last three weeks alone, inflows have plummeted by 24%, currently hovering at $66.5 billion. This reduction in funds coupled with high trading volumes indicates a tightening liquidity landscape as outflows outweigh inflows, potentially amplifying price fluctuations. This market volatility is particularly pronounced in Bitcoin, which has seen major volume spikes during 2025 that coincide with both buying and selling opportunities, suggesting a cyclical pattern.