The crypto market may be on the verge of a cooldown, warns Meltem Demirors — a veteran analyst and partner at Crucible Capital. In a recent statement on platform X (formerly Twitter), she expressed serious concerns about the current market dynamics and the lack of risk appetite among investors.
Low Trading Volumes and Decline in BTC Volatility
According to Demirors, Bitcoin trading volumes have sharply declined compared to pre-election levels, indicating apathy. Additionally, the implied volatility in the BTC options markets has dropped significantly, suggesting low interest in leveraged positions and reduced activity from traders.
Significant Outflows Expected
Demirors emphasizes that the crypto market may enter a difficult sideways phase, affected by a combination of:
- Forced selling related to the recovered assets from Mt. Gox
- Weekly token unlocks worth ~$800 million
- Lack of genuine institutional demand to absorb the pressure
Despite the Growth – It’s Just a “Relief Bounce”
Despite the recent price uptick, Demirors characterizes it as a temporary bounce driven mainly by retail investors and algorithmic strategies, rather than sustained fundamental demand. This casts doubt on the market’s ability to maintain momentum in the coming weeks.
What Happened to the ETF Effect and the “Trump Pump”?
Demirors notes that much of the 2024 gains were fueled by factors such as:
- The successful launch of spot ETFs
- The political boost from Trump’s influence
- Optimistic long-term positioning by major companies
Nevertheless, the current market environment seems more tempered, with no clear new catalyst in sight.
Conclusion:
The cryptocurrency market is entering a potentially risky phase, marked by low activity, apathy, and impending outflows.
According to Meltem Demirors, investors should remain cautious, as the seemingly positive momentum may prove to be temporary.
The state of the market in the coming weeks will reveal whether this is merely the calm before the storm or the beginning of a deeper correction.
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She highlights a combination of low trading volumes, reduced volatility, and a lack of investor appetite as signs of growing market apathy. Additionally, upcoming outflows from Mt. Gox and weekly token unlocks could create downward pressure.
According to Demirors, the recent price increases appear to be a “relief bounce,” primarily driven by retail investors and short-term algorithmic strategies, rather than strong institutional demand — making sustainability uncertain.
The rally was largely influenced by the launch of spot Bitcoin ETFs, political momentum associated with Donald Trump, and bullish positioning from major financial players. However, no new catalysts are currently driving the market.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice.
