Bitcoin Trapped In Bear Market Woes As Liquidity Runs Dry, Is Another Crash Coming?

Bitcoin’s price structure is showing signs of strain, and new data from CryptoQuant shows that fresh capital is no longer entering the market. Instead of the recent drawdown acting as an attraction for buyers, it appears to be triggering withdrawals. This change in liquidity behavior is important, as it indicates that Bitcoin may be transitioning into deeper bear market conditions. Notably, on-chain metrics tracking new liquidity flows are revealing negative cumulative inflows over the past month. Selling Pressure Builds, New Investor Inflows Flip Negative According to a recent analysis that was done on the CryptoQuant platform, Bitcoin’s 30-day cumulative new investor flow has dropped to approximately $2.6 billion. Related Reading: Analyst Reveals The Best Time To Buy Bitcoin And The Best Time To Sell This metric was revealed from CryptoQuant’s ‘Bitcoin New Investor Flow’ data, which is revealing that more capital is leaving the ecosystem than entering it. The data shows that the ongoing dip is failing to attract meaningful participation from new buyers. Interestingly, the current reading of this metric is displaying a huge contrast between previous bull phases and current conditions. Large spikes in new money, visible in blue in the chart below, accompanied strong price rallies, particularly in 2017, 2021, and again during the 2024-2025 bull market. Those inflow surges coincided with powerful upside momentum in terms of price action. At present, those spikes are notably absent. Instead, the lower section of the chart is displaying growing red readings due to net capital outflows. The latest print is below zero, which shows that sell-offs are not being absorbed by fresh liquidity. This dynamic matters because markets rely on marginal buyers to sustain higher prices. When new participants step back, price action becomes vulnerable to deeper pullbacks. That is why there is a need for new buyers to absorb the selloffs. Low Liquidity Raises Crash Risks Although liquidity contraction does not automatically guarantee another major crash, it increases fragility of price action. Bitcoin, for one, is still trading below $70,000, although bulls have largely prevented further breakdowns below $60,000. This, in turn, has kept the Bitcoin price trading in a range around $70,000. Related Reading: Bitcoin Caught Between Two Liquidity Traps — Which Side Breaks First? However, many crypto analysts are of the notion that Bitcoin could still crash further to lower price levels. Calls for a deeper correction are circulating across trading platforms and social media, with projected bottoms stretching from around $55,000 to as low as $30,000. The absence of inflow spikes suggests that Bitcoin may struggle to regain momentum in the near term. If liquidity continues to dry up, the probability of another significant leg lower before a rebound increases. At the time of writing, Bitcoin is changing hands at $67,160, reflecting a modest 0.3% gain over the past 24 hours. This price behavior is unfolding alongside a slowdown in mining activity due to miners shutting down their systems, which led to the largest mining difficulty drop since 2021. Featured Image from Pixabay, chart from Tradingview.com

XRP Community Day Recap: The 7 Most Bullish Takeaways

Ripple used XRP Community Day to tighten its message: XRP is not an accessory to the business, it’s the organizing principle and the company is positioning its product stack, regulatory posture, and institutional roadmap around that premise. XRP Community Day Highlights CEO Brad Garlinghouse went straight for the ceiling. “There will be a trillion dollar crypto company, I don’t doubt that for a second,” he said. “I think Ripple has the opportunity to be that company, and maybe there’ll be more than one.” The framing matters because it’s not a token price call — it’s a scale argument about where regulated rails, liquidity, and enterprise distribution could concentrate as XRP plugs further into legacy finance. Policy was the second major pillar. Garlinghouse put odds on the table for US legislation, predicting a “75%” chance the CLARITY Act will be “very close to getting signed by the end of April.” Related Reading: XRP Positioned For Major Structure Shift As Price Tests Critical Level Garlinghouse also tried to reconcile market volatility with institutional appetite, pointing to ETF flow behavior during a rough tape. “I believe in a multi-chain world. Even last week, when there was massive carnage going on in the market, there was positive XRP ETF inflows of $30M or $40M,” he said. “Public markets are keen to invest in crypto. Customers want it.” The compliance posture was framed less as defensive and more as a competitive moat by Garlinghouse. “We want to be the most regulated, compliant, because we’re focused on institutional flows—that is the priority,” Garlinghouse said. “The OCC charter makes it very clear that RLUSD is a leader under the GENIUS Act, it cements our leading position.” In Ripple’s telling, regulatory credentials aren’t a cost center; they’re how you win mandates, counterparties, and distribution in the parts of the market that actually move size. He also hinted at some major progress on the Fed Masters Account. “Now, there’s been a lot of speculation about what we could do in the future,” Garlinghouse said. “There’s been some commentary about a Fed Master Account, which we do think is compelling. And there’s things we may do in the future that I’m not gonna go into today.” He then anchored the point in trajectory rather than rumor: conditional OCC approval and engagement, he said, represent “massive progress relative to where we started this journey.” Related Reading: Glassnode: XRP Is Back In Its 2021-2022 Playbook As SOPR Drops Sub 1 On XRP itself, Garlinghouse delivered the cleanest thesis statement of the event: “XRP is the north star for Ripple. It’s our purpose.” He tied Ripple Payments, Ripple Prime, Ripple Treasury, custody, and RLUSD to a single objective: “how we can drive utility, trust, liquidity around XRPL.” President Monica Long expanded that into an execution roadmap: “We’re rewinding the tape back to the founding of the company, like XRP and the Ledger are our reason for being,” she said. “So we call it our North Star, like that this is kind of what guides us in a lot of our product strategy and decision-making.” From there, she outlined three institutional-flavored pushes: bringing more licensed payments flow onto the XRPL DEX, a “payments credit” concept that matches payment-provider financing needs with XRP holders seeking yield via a proposed lending protocol amendment, and growing custody demand as banks move past safekeeping and into tokenization of deposits, funds, and traditional securities. At press time, XRP traded at $1.38. Featured image created with DALL.E, chart from TradingView.com