- Capital inflows plunged 70% from $8.2B to $2.38B even as Bitcoin recovered, revealing a widening gap between price and investor behavior.
- BTC and ETH net positions flipped from $2.04B positive to $757M negative, indicating institutional selling into Bitcoin’s price strength.
- Stablecoin reserves fell by nearly 50%, suggesting reduced liquidity and less idle capital waiting to flow into the crypto market.
According to crypto analyst Ali, Capital inflows into the crypto market dropped sharply in mid-April, falling from $8.20 billion to $2.38 billion. Despite Bitcoin’s strong rebound, capital entering the ecosystem declined. From April 1 to 18, Bitcoin’s price showed volatility. It began the month near $83,000, fell to $76,000 by April 9, then rebounded to $85,000 by April 17. However, despite this recovery, underlying metrics suggest waning market strength. On April 18, BTC closed at $84,444.08, just below its recent peak.
Capital Inflows Signal Market Weakness
Besides price volatility, capital flow metrics reflected weakening confidence. Positive 30-day capital inflows remained substantial early in April. They peaked at $8.20 billion on April 3. However, they steadily declined, dropping to $2.38 billion by April 18. This 70% plunge reveals shrinking investor interest, especially from institutions.
Moreover, no negative capital outflows were recorded, indicating that while capital entered the market, the volume steadily decreased. This trend marks a slowdown in fresh capital deployment, rather than aggressive withdrawals.
BTC + ETH Net Position Turns Negative
The BTC + ETH Net Position Change added further concerns. On April 3, the metric stood at a strong $2.04 billion, reflecting accumulation. However, by April 18, it reversed to negative $757 million. Hence, selling pressure increased even as prices climbed. Institutions appear to be selling into strength, reducing their exposure.
Additionally, stablecoin activity followed a similar pattern. The Net Position Change dropped from $6.15 billion to $3.13 billion by April 18. Consequently, the reduced stablecoin reserves suggest less capital remains on the sidelines, ready to re-enter the market.
Diverging Trends Point to Uncertainty
Trading volume stayed consistent throughout the period, with slight increases mid-month. However, the divergence between price recovery and capital movement signals growing uncertainty. Bitcoin rebounded, but institutional behavior pointed towards risk-off sentiment.
Furthermore, declining stablecoin reserves and negative net position changes for BTC and ETH reveal possible liquidity concerns. This combination of indicators points toward increased volatility ahead. Investors should monitor how these conflicting signals evolve in the coming weeks.
