CryptoQuant CEO highlights weakening Bitcoin capital inflows after 2.5 years, affecting sentiment recovery.

Bitcoin’s on-chain capital inflows are weakening after a sustained growth period of 2.5 years. Realized cap stagnation may delay market sentiment recovery for months, according to CryptoQuant CEO, Ki Young Ju.

Involved parties include institutional investors and Bitcoin ETFs. Actions show capital outflow of approximately 24,000 BTC in Q4 2025. Realized cap flatness signals broader market challenges.

The immediate effect includes a pause in Bitcoin demand, reflecting weaker market confidence. BTC price drawdowns are evident, contributing to an overall market cap loss of $716B.

The financial implications involve slowed institutional treasury purchases and reduced retail activity. Bitcoin ETF redemptions further highlight market-driven dynamics.

Market changes reflect historical demand growth peaks seen in past bear markets. Retail activity, social search interest, and distribution metrics indicate a bear-like environment.

Insights suggest a prolonged sentiment recovery period, influenced by realized cap trends and prior pattern repetitions. Institutional ETF holdings and retail response remain key indicators, with no new regulatory updates announced.

“Bitcoin’s on-chain capital inflows are showing signs of weakening after a sustained growth period of 2.5 years… market sentiment recovery could take several months.” – Ki Young Ju, CEO and Founder, CryptoQuant