A research team from a leading investment bank recently published their views, believing that the intense correction in the cryptocurrency market is gradually approaching a bottom. By analyzing hard indicators such as capital flows and position allocations, and after the large-scale deleveraging wave at the end of last year, signs of stabilization have already emerged in the market.

The team pointed out that as early as January, various cryptocurrency indicators began to bottom out simultaneously. This is not limited to the perpetual contract market; even the investor exposure metrics derived from futures positions at certain exchanges pointed in the same direction.

**How fierce was the "hot stocks, cold coins" trend at the end of last year**

In December last year, the performance of global capital markets was quite interesting—stock ETFs absorbed a staggering $235 billion, hitting a record high. However, during the same period, spot ETFs for Bitcoin and Ethereum continued to bleed, with large-scale redemptions. This indicates that investors significantly reduced their positions in crypto assets ahead of the year-end.

Bitcoin retraced by double digits from its all-time high, and smaller, more volatile coins fell even more sharply. This correction was accompanied by soaring volatility and ETF redemption waves, reflecting a rapid contraction in global risk appetite. After a rally last year, crypto prices finally entered a consolidation phase.

**But signals are turning around**

It is worth noting that after January, the selling pressure seems to have nearly exhausted itself. Funds flowing into Bitcoin and Ethereum ETFs have begun to show signs of returning, and this detail is very important.