Over the past month, the Bitcoin market has experienced a significant capital outflow, totaling more than $2.6 billion. According to analysts, this decline in investment activity indicates a lack of interest from new participants, even despite the decrease in the cryptocurrency’s value.
This is reported by Business • Media
Bearish Signals Amid Lack of Capital Inflow
The analytical company CryptoQuant emphasizes that for a bullish trend in Bitcoin to form, a flow of new capital is necessary, especially during price corrections. However, recent data shows a different trend — capital is leaving the market, reinforcing the bearish trend scenario. This dynamic is characteristic of the early stages of a bear market, when, amid falling prices, investors exhibit caution and are unwilling to invest new funds.
“In the early stages of a bear market, weakness triggers outflows. Current indicators resemble periods following historical peaks, when margin buyers exit, and prices move through internal rotation rather than through net investments,” the experts noted.
Conflicting Signals from Glassnode: Network Active, Profitability Declines
While CryptoQuant notes the absence of fresh capital, the analytical service Glassnode highlights an increase in fundamental activity within the Bitcoin network. At the same time, despite the activation of operations on the blockchain, the overall flow of funds and investor profitability remain low. This creates an ambiguous situation for the market and prompts experts to speak about potential prolonged volatility.
Previously, analysts at Wintermute expressed concerns about the reasons behind the cryptocurrency market crash, predicting extended periods of fluctuations. Additionally, it was emphasized that according to futures market data, there is a risk of further declines in the Bitcoin price, although major players continue to increase their positions in this cryptocurrency.