Amid a broader market decline, Bitcoin fell to April 2025 levels, hitting a low of $75,519 before recovering slightly. At the time of writing, BTC was trading at $78,862, down 4.61% on the daily charts and 10% on the weekly charts.
Amid this long-term downtrend, BTC experienced reduced interest from investors, with traders stepping back and others reducing their exposure.
Bitcoin capital inflows are drying up
According to Ki Young JuThe Realized Cap has flattened, indicating that no new capital has flowed into Bitcoin recently.
In fact, capital flows into Bitcoin have almost completely dried up. The analyst noted that when market capitalization declines in that environment, it is a signal that the market is in a deep bearish zone.
Bitcoin [BTC] saw significant capital inflows due to continued accumulation by Strategy (formerly MicroStrategy) and Spot ETFs.
In fact, MSTR added 523,000 BTC between 2024 and 2026, a jump from 189,000 to 712,000, increasing demand for Bitcoin.
Source: CoinGlass
During this period, MSTR pumped more than $50 billion into Bitcoin without any outflows, strengthening the demand side.
At the same time, the adoption of ETFs led to significant capital inflows into Bitcoin, with total assets exceeding $100 billion.
This strong capital inflow from institutional investors kept BTC prices high, and now these inflows have dried up.
Selling pressure dominates the market
While capital inflows have dried up, selling pressure from both retail and institutional investors continues.
For starters, outflows have dominated the ETF market, with outflows reaching $1.3 billion between January 29 and 30. The trend has remained significant, with net inflows occurring only once in the last ten days.
Source: SoSoValue
Such a sustained period of outflows suggests that institutional investors have increased and decreased their exposure.
Moreover, exchange activities have signaled this distribution phase. According to data from CryptoQuant, Bitcoin recorded higher inflows for the past three consecutive days.
Source: CryptoQuant
At the time of writing, Exchange Netflow was at 9.5k BTC, a significant jump from the previous day’s 3.7k BTC. During this period, over 87,000 BTC was sold on exchanges, a clear sign of aggressive spot dumping.
Has the bottom already been reached for BTC?
Bitcoin fell below $80,000 amid a cascade of liquidations. According to MintGlassBitcoin saw significant liquidation, with $736 million in long positions liquidated.
As a result, downward momentum accelerated as holders panicked and exited the market. As such, Bitcoin’s stochastic ergodic indicator made a bearish crossover and fell deeper into negative territory to -0.46.
Source: TradingView
A dip to such lower levels indicated strong downward momentum, with buyers completely driven out of the market and sellers in full control.
Such market conditions positioned BTC for potentially more losses on its price charts. So if sellers continue to offload, BTC will likely continue trading below $80,000.
Looking at the Future Grand Trend indicator, BTC is positioned for an extended period of weakness with $76,000 as the key support. In a bullish case in early February, Bitcoin could rise to $85,000 to $92,000 before rebounding.
Final thoughts
- Bitcoin [BTC] fell to a 9-month low of $75,519, then recovered to $78k at the time of writing.
- Bitcoin faced prolonged weakness due to reduced inflows of new capital and continued selling pressure.