Is capital the true driving force? The death spiral of ETH price and liquidity

Question

【Crypto World】Institutional analysis points out that in the crypto market, what truly determines price movements is not adoption rates or use cases, but pure capital inflows and outflows. It sounds harsh, but the data indeed shows this — the massive rally of the Ethereum ETF is a vivid example. Pouring $10 billion in, ETH jumped from $2,600 directly to $4,500; once the capital flow slows down, the price drops instantly.

Why is this the case? The reason is simple: the current market’s fundamental demand is already lukewarm, so whether it’s Ethereum or the entire crypto ecosystem, they are highly sensitive to capital movements. Even the slightest change can amplify into price volatility. Compared to the previous bull market, which was supported by tangible stories like adoption growth, revenue increase, and network expansion; this cycle is different — it mainly depends on who has more money, who can accelerate the push, and when someone suddenly pulls out.

Want to understand the subsequent market trend? The key is to read the rhythm and规律 of these capital flows clearly. Before entering in 2026, this mindset must be clarified.

GasFeeBeggar · Accepted Answer

Basically, it's the whales playing around; the fundamentals are all nonsense.

In terms of funds, one sentence says it all—everything else is useless.

There's no story in this bull market, it's purely about throwing money to push up the prices.

It's not the first time; when money flows in, prices go up; when it flows out, it crashes.

100 billion came in and pushed to 4500, and now... it's completely cooled off.

This cycle feels especially虚, with nothing to support it.

GasFeeVictim · Answer

Basically, it's a capital game; the fundamentals have long been dead.

Investing 10 billion to increase the price by $1900, then getting cut in half directly—this is the reality.

That wave of ETFs is a textbook example of institutions harvesting retail investors.

Things without real demand rely solely on hot money for hype; sooner or later, they'll fail.

This cycle really depends on who can run faster; it has nothing to do with actual applications.

InfraVibes · Answer

Basically, it's a game of hot potato; whoever doesn't hold the flower is doomed.

It's just a capital game; supporting the price with cases has long been outdated.

Invested 10 billion to push the price to 4500, then cut loose and halved... This is the current situation.

No one believes the story anymore; now it's all about where the money flows.

It's always like this—hot money flows in and out, and retail investors get washed out.

Without real demand to support the bottom, the price becomes especially fragile.

Rather than guessing the bottom, it's better to watch the whale wallets.

The biggest difference between this round and the last is that there's no longer coverage from adoption rate growth.

Pure liquidity gambling—it's so real, it hurts a little.

GasFeeCrier · Answer

At its core, it's still a money game. Fundamentals are all nonsense.

Put 10 billion in and it rises; when the funds withdraw, it plunges. Who believes this is truly a technological revolution?

This cycle is too painful. Without a supporting story, it's purely about who has more ammunition.

Right now, it's a gamble on when institutions will pull out. It's so exciting.

The high sensitivity of funds indicates that the ecosystem really lacks practical applications. Sigh.

PositionPhobia · Answer

Basically, it's a game of hot potato; whoever catches the last stick is doomed.

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This wave is really just a capital game. Without fundamental support, it's too risky.

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Wait, what about those Web3 applications before? Were they all just scams?

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Pouring 10 billion in to reach 4,500, and now? It all depends on who can run faster.

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No wonder every time I try to bottom fish, I get trapped. Turns out, it's just waiting for funds.

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The institution's analysis this time hit the nail on the head; it really is a game of money.

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How am I supposed to know when the next big investment will come? Isn't this just gambling?

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Damn, they used to talk about ecosystem development, now they speak frankly.

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When funds slow down, the market plunges—this is a timed bomb.

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So retail investors should just stay away, wait for institutions to make a statement before following?

Ser_This_Is_A_Casino · Answer

Basically, it's a dealer's game—no fundamentals, only capital flow.

Invest 10 billion to push the price up, and when the funds withdraw, it crashes. Isn't this just a casino?

It used to be about storytelling, but now it's just about who has deeper pockets.

Let's wait and see who runs away first.

Is capital the true driving force? The death spiral of ETH price and liquidity

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Is capital the true driving force? The death spiral of ETH price and liquidity

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Your First Words Matter! Share your first post on and split $10,000 in New Year rewards. Post with #My2026FirstPost to share your New Year wish 2026U Position Voucher, Gate New Year boxes, F1 Red Bull merch await you! Ends on Jan 15, 2026, 16:00 UTC 2026 starts with this post!

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Share your first post on and split $10,000 in New Year rewards.
Post with #My2026FirstPost to share your New Year wish
2026U Position Voucher, Gate New Year boxes, F1 Red Bull merch await you!
Ends on Jan 15, 2026, 16:00 UTC
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