Bitcoin's Capital Inflows Nearly Zero Despite Recent Price Rally

Bitcoin's capital inflows have slowed to nearly zero as trading activity weakens. Despite reaching $66,700 and recovering to around $65,100, analysts say broader capital inflows remain stagnant.

Glassnode, a blockchain analytics firm, pointed out in its recent market overview that 'active addresses remain steady, but economic settlement and transaction pressure remain restrained.' The firm tracks fresh capital by analyzing changes in Bitcoin's realized value, which records each BTC at the price at which it last changed hands. This measure had already fallen 57% to nearly zero in early June.

Monthly inflows typically climb from about $2 billion to over $10 billion during a bull market. However, May's rebound reached only $2.8 billion before fading again. Institutional demand has also softened as spot Bitcoin ETFs lost about $465 million over July 23 and July 24.