Cryptocurrency Market Shows Limited Momentum Amid Weak Capital Inflows

The cryptocurrency market has seen a surge in prices at the start of the week, with Ether (ETH) and Solana (SOL) rising over 3% since midnight UTC.

However, despite this initial momentum, analysts are warning that further gains may be limited due to weak signs of fresh capital inflows.

The demand side appears weak, with institutional investors showing reduced interest in cryptocurrencies. The 11 U.S.-listed spot bitcoin exchange-traded funds (ETFs) have registered a net outflow of $296.18 million, snapping a four-week streak of inflows.

Stablecoins, such as Tether's USDT and Circle Internet's USDC, are also flashing warning signs. The growth in the market cap of these stablecoins has stalled or declined, indicating reduced investor interest.