CryptoQuant Founder Reports Bitcoin Capital Inflows Stalled, Sentiment Recovery Delayed

The founder and CEO of CryptoQuant has highlighted a slowdown in Bitcoin's on-chain capital inflows over recent months.

Key Points

Bitcoin's "Realized Cap," an on-chain capitalization model, has stalled after 2.5 years of growth, indicating reduced investor sentiment.
Realized Cap calculates the total value of Bitcoin by considering the last transaction price of each coin as its cost basis.
The CryptoQuant PnL Index, which uses on-chain indicators like MVRV Ratio, NUPL, and STH/LTH SOPR, shows a potential shift in market sentiment. These indicators reflect unrealized profits/losses and investor profit-taking behavior.
A chart shows the 365-day moving average (MA) of the Bitcoin PnL Index reaching a high earlier this year, suggesting overvaluation, followed by a decrease.
Despite the downturn, the metric remains positive, indicating a bullish phase, though historically, such declines often precede bear markets.
No immediate signs of sentiment recovery; the process may take several months.

Bitcoin has rebounded from last week's decline, with its price returning to $89,800.

Bitcoin Price Chart