On-Chain Flows Influence Short-Term Crypto Prices

2 mins mins

Key Points:

The current crypto market driven by on-chain fund changes.
USDC premium signals a bottom rebound structure.
Market outlook remains cautious amid potential selling pressure.

CoinKarma announced on January 1st via social media that the cryptocurrency market has shifted to the on-chain game stage, emphasizing on-chain fund flows impacting price volatility.

This shift highlights the current dominance of on-chain factors in cryptocurrency price movements, potentially affecting trading strategies and investor expectations amid ongoing liquidity challenges.

USDC Premium Points to Potential Rebound

CoinKarma claims that the cryptocurrency market is entering a predominantly on-chain state. The USDC/USDT premium index recently turned positive, indicating a weakening of selling pressure on the BTC/USDT trading pair. This marks a significant shift in liquidity dynamics.

The current premium and liquidity index suggest the potential for a short-term rebound in cryptocurrency prices. However, the medium- to long-term outlook remains uncertain, with potential selling pressures still present. Strategic caution is advised for investors during this period.

No official statements from key influencers or regulatory authorities have been identified, leaving markets reliant on inherent dynamics.

Major industry players have yet to comment on CoinKarma’s claims.

BTC Market Data and Strategic Insights

Did you know? The turning positive of the USDC/USDT premium index often historically signals a shift in market sentiment, potentially indicating a short-term bearish cycle bottoming out.

Bitcoin (BTC) is trading at $87,814.49 with a market capitalization of $1.75 trillion. The circulating supply stands at 19,970,118 with a maximum cap of 21,000,000. Over the past 90 days, BTC has seen a 28.68% price reduction, and a 24-hour trading volume decreased by 28.62% to $23.64 billion, according to CoinMarketCap.

bitcoin-daily-chart-5431 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 16:17 UTC on January 1, 2026. *Source: CoinMarketCap*

The Coincu research team identifies a complex landscape for crypto investors. Despite short-term optimism, regulatory concerns and technological challenges remain imminent. This environment requires cautious strategic investment and monitoring of key indicators to navigate the unpredictable market landscape.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.