Cryptocurrency Market Faces Pressure Amid Weak Demand and High Trading Volumes

According to ChainCatcher, a recent report by 10x Research indicates that the recent sell-off in the cryptocurrency market is primarily driven by spot sales rather than leveraged trading. This suggests that despite a slowdown in the downward momentum, demand remains weak. Trading volumes continue to be high, and the growth of stablecoins is slowing down, particularly with the outflow of funds from USDC, signaling a persistent shift of capital from cryptocurrencies to fiat currencies. Bitcoin is experiencing additional pressure due to factors such as liquidations, distribution by large holders, ETF fund outflows, and changes in macroeconomic policy expectations. Ethereum is also weakening, as ETF fund outflows and a sharp decline in derivative positions offset positive developments like BlackRock's staking ETF application.