Crypto Assets continued to "flash crash" on Monday, with some Tokens already falling back to the October flash crash lows, "the institutional demand for Bitcoin has fallen below the Mining rate for the first time in 7 months".

Abstract: Analysis suggests that the shadow of turmoil in the cryptocurrency market in October still looms. Investors are unlikely to enter the market easily until clear signals of price support appear. At the same time, institutional demand for Bitcoin has fallen below new coin mining rates for the first time in seven months, indicating that large buyers may be retreating. Additionally, some previously dormant wallets have been activated, and profit-taking has provided some selling pressure to the market.

Under the shadow of the historical deleveraging event in October, the Crypto Assets market is facing a new round of selling pressure. A key indicator shows that demand from large institutional investors is weakening, exacerbating the cautious sentiment in the market.

On Monday, the Crypto Assets market continued to be under pressure, with Bitcoin's price falling below $107,000. The broader altcoin market performed even more weakly, with some Token prices having dropped back to the lows seen during the October flash crash, when hundreds of billions of dollars in leveraged positions were liquidated.
A warning signal is that, according to Charles Edwards, founder of Capriole Investments, institutional demand for Bitcoin has fallen below the new coin mining rate for the first time in seven months. This shift suggests that large buyers may be retreating, and together with other market activities, points to a risk-off tone across the entire Crypto Assets market.

Market sentiment is cautious, and institutional demand is cooling.
Bitcoin fell 4.3% to around $105,300 on Monday, and although it has still risen about 14% since last December, its recent performance has been noticeably weak. Meanwhile, the MarketVector index, which tracks the performance of the bottom 50 of the top 100 digital assets, has declined for the third consecutive trading day, with a drop of as much as 8.8%. So far this year, the index has fallen by about 60%.

Market participants have indicated that it has been three weeks since the violent upheaval in October that wiped out about $19 billion in long positions, but its "aftereffects" are still ongoing. Jordi Alexander, CEO of the crypto trading and market-making firm Selini Capital, stated that the crypto market is currently in the "hangover phase" following the October liquidation shock. He believes that rebuilding the destroyed capital base will take time, and investor sentiment remains cautious.

Alexander added, "The market must first demonstrate that a convincing price bottom is about to form before it can attempt to break upwards again." In his view, investors will not easily enter the market until clear signals of price support appear.

In addition to weak market sentiment, a key technical indicator has also signaled a red light. Charles Edwards of Capriole Investments pointed out that demand for Bitcoin from large institutions has slowed down, marking the first time in seven months that it has fallen below the output rate of new coins. This data suggests that one of the key forces that previously drove the market up may be weakening.

Is there another source of selling pressure? Profit-taking and "sleeping" Bitcoins are being activated.
Not everyone blames this round of fall entirely on the market shock in October.

CoinShares' digital asset analyst Matthew Kimmell described this round of correction as "somewhat perplexing." He believes that, although the market "is still experiencing some reactions to the liquidation events," other factors are also worth paying attention to.

Kimmell pointed out that Bitcoin's public transaction records reveal that some long-dormant wallets have been activated. "These tokens have started to move, likely re-entering the market and providing some selling pressure, as investors are taking profits," he said. "This is something I am continuously monitoring."