Crypto veteran Meltem Demirors thinks upcoming outflows could be rough for the crypto market.

Demirors, a general partner at the investment firm Crucible Capital, says on the social media platform X that there’s “apathy and complacency everywhere.”

“Zooming out, BTC volumes are lower than they were pre-election, and implied volatility in options markets is also very depressed – meaning there’s low demand for leveraged bets on Bitcoin by savvy traders.

So, what’s the outlook on flows? 2024 ripped – between ETFs (exchange-traded funds) and the Trump Pump and the persistent strategy bid – it was a mega year for inflows. We have Gox moving coins, not really much forced sell pressure but not much demand either. We’ll be sideways for a bit.

I still think we have a lot of pain left in this cycle and outcomes going forward will be binary. There’s $800 million of tokens unlocking every week. Show me the bid. Show me liquid funds who haven’t been carried out. No feelings, these are the facts.”

Source: Meltem Demirors/X

Demirors says this week’s crypto market price jump is a “relief bounce” driven by retail traders and algorithmic commodity trading advisors (CTAs).

The overall crypto market cap is up more than 4.4% in the past seven days.

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

Generated Image: Midjourney