Matrixport: In the current crypto market, capital flow has a greater impact on prices than fundamentals

Odaily Planet Daily reports that Matrixport released a chart today stating that, based on pricing logic, the main driving force behind cryptocurrency asset prices remains the inflow of incremental capital, rather than changes in user numbers or application scenarios themselves. This is especially evident in the Ethereum ETF: during the nearly $10 billion influx of funds, ETH prices rose from about $2,600 to $4,500; when the capital inflow slowed, prices quickly retraced the previous gains. In an environment where new real demand is relatively limited, Ethereum and the broader crypto market remain highly sensitive to marginal changes in capital flow. Compared to the previous bull market, where the main narrative centered around “adoption, revenue, and network growth,” and investors were willing to pay premiums for these expectations; in this cycle, price performance is more largely dependent on where the capital flows, how quickly it enters, and when it suddenly stops. Understanding and proactively grasping these capital flows will be one of our core areas of future research and a key focus for tracking until 2026.