According to the latest assessment shared by CoinKarma, the cryptocurrency market has once again entered the essential trading phase.
Since there is no net inflow of external capital, short-term price fluctuations are mainly caused by changes in the circulation of funds and liquidity within the market. CoinKarma notes that after the consolidation period, some signs of reversal in internal fund behavior were observed.
The USDC/USDT premium index turning positive indicates that USDC is trading at a premium compared to USDT. This suggests that selling pressure from dominant market participants, especially on the BTC/USDT pair, has significantly reduced. Historically, such premium movements coincide with periods of weak selling pressure in the short term.
The market-wide liquidity index stands out as a comprehensive measure that reflects the weighted liquidity level of the entire market. According to CoinKarma, the fact that the USDC/USDT premium index and the market liquidity index are moving in the same direction once again strengthens the possibility of forming a bottom in the short term.
Coinkarma emphasizes that although the chances of a short-term recovery are increasing, the medium- to long-term outlook remains negative. They warn that market fragility could continue, especially if trend-based selling pressure reappears.
*This is not investment advice.
