TechFlow, on December 24, Matrixport released a chart stating, "From a pricing logic perspective, the primary driver of cryptocurrency asset prices remains inflows of new capital, rather than changes in user numbers or application scenarios. This is particularly evident with Ethereum ETFs: during a period of nearly $10 billion in continuous inflows, ETH price rose from around $2,600 to $4,500; however, when inflows slowed, the price quickly gave up those gains.
In an environment where new real demand is relatively limited, Ethereum and the broader cryptocurrency market remain highly sensitive to marginal changes in capital flows. Compared to the previous bull cycle, whose narrative centered more on 'adoption, revenue, and network growth,' investors were willing to pay a premium for these expectations. In this current cycle, price performance depends more significantly on where capital flows, how quickly it enters, and when it suddenly stops."
