Although the Federal Reserve has shown some signs of easing recently, the current situation in the crypto market is actually quite awkward—funds are circulating within the ecosystem without any new external capital coming in. The root cause is simple: all three major liquidity channels—stablecoins, Bitcoin ETFs, and digital asset trusts—are all beginning to slow down.

The data makes this very clear. Since 2025, the inflow of funds into these three liquidity sources has significantly slowed. Although the stablecoin market has already reached $290 billion, doubling in size, its growth has now basically stagnated; the ability of Bitcoin ETFs to attract funds is also waning; and the net assets of digital asset trusts have seen little growth. The three engines shutting down together indicate that it’s not just a rotation of funds among these three, but rather that new capital itself is not flowing in much anymore.

Market liquidity hasn't disappeared; it’s just circulating within the system—mainstream coins and altcoins are being traded back and forth, a typical scenario of players competing against each other. This also explains why recent rebounds have been so short-lived and why volatility remains so intense. To truly break the deadlock, at least one of the three drivers needs to restart: large-scale stablecoin issuance, approval of new ETFs, or an increase in trust product offerings. Only then can macro liquidity truly return to the crypto market.