Matrixport reports that the current cryptocurrency market is primarily influenced by capital flows rather than fundamental factors. A notable example is Ethereum, which surged from $2,600 to $4,500 during a $100 billion capital inflow, only to reverse as the inflows decelerated. This highlights the market's sensitivity to changes in capital movement. Unlike previous cycles that emphasized adoption, the present market dynamics are shaped by the speed and direction of capital flows. Matrixport suggests that monitoring these flows will be crucial for understanding market trends in 2026.