On January 1st, CoinKarma posted on social media that the cryptocurrency market has returned to an on-exchange trading phase, with on-exchange factors becoming key to short-term price movements. In the absence of clear external capital inflows, the current crypto market is primarily driven by on-exchange fund circulation, with short-term price fluctuations largely stemming from changes in on-exchange fund flows and overall liquidity. CoinKarma has recently observed that after a period of consolidation, some on-exchange fund behavior has shown signs of a turning point.
When the USDC/USDT premium index turns positive, it indicates that USDC is trading at a premium to USDT, primarily reflecting a significant reduction in selling pressure from dominant market players on the BTC/USDT trading pair. Meanwhile, the overall market liquidity index reflects a comprehensive measure of the weighted liquidity level across the entire market. Currently, the USDC/USDT premium index and market liquidity indicators are resonating again, suggesting a high probability of forming a bottoming-out structure in the short term. However, the current medium-to-long-term outlook remains bearish, and the potential impact of trend-driven selling pressure should not be overlooked.
