Demand increased by 22%, but it is difficult to change the negative balance. The signs of crypto recovery are questionable

According to Woofun AI, although demand in the cryptocurrency market is showing signs of recovery, the core contradiction is that the technical reversal has not yet been confirmed. The rebound in prices has led to the strengthening of mainstream assets, yet key indicators such as liquidity, institutional flows, and US premiums show that the market has not escaped the volatile pattern.

From a liquidity perspective, the rate of transfer of stablecoins to exchanges is now slowing down. Technical analyst CW8900 notes that since Bitcoin's price fell back to $58,000 in April 2026, capital outflows have dominated market trends.

According to data compiled by Woofun AI, the gradual reduction in withdrawal amounts means that if deposit speed remains at the current level, the net inflow of the market is expected to change. Cryptocurrency demand increased 22% over the past 7 days, driving Ethereum and Bitcoin to new multi-month highs.

Institutional capital flows showed a brief recovery. On August 24, 2026, there was a net inflow of $337.56 million in Bitcoin spot ETFs and a net inflow of $1155.7 million in Ethereum-related products. According to SosoValue data, Solana spot funds attracted US$33.49 million in a single day, the highest since December 15, 2025; Ripple-related products also received US$13.82 million in inflows.

However, analyst Darkfost notes that Bitcoin ETF reserves have been reduced by nearly 92,000 BTC since the beginning of 2026, and although demand has increased by around 26,000 over the past 30 days, this is not enough to reverse the full-year sell-off trend.

US investor sentiment has partially recovered through the Coinbase (COIN.US) Premium Index, which measures the spread between Coinbase (COIN.US) Pro and Binance. CryptoQuant data shows that the Bitcoin index is -0.014 and Ethereum is -0.004, an improvement from -0.10 in mid-August 2026, but has remained below zero since early May. Market focus is turning to the upcoming monthly cash flow report and the ETF issuer balance sheet to be announced at the end of August 2026.