Weak Capital Inflows and Shifting Risk Appetite Could Stall Bitcoin Momentum
Bitcoin may be heading into a period of prolonged sideways price action in the coming months, as capital inflows slow and investor attention shifts back to traditional markets. Market observers suggest that while a major crash looks unlikely, strong upside momentum may also remain limited in the short term.
“Capital inflows into Bitcoin have dried up,” Ju said on Wednesday;
According to recent market analysis, new money flowing into Bitcoin has largely dried up, with traders reallocating capital toward equities, gold, and silver, which have seen strong performance. This rotation has reduced speculative pressure in crypto markets, contributing to muted price movement.
At present, Bitcoin is trading near the $91,000 level, down from recent weekly highs. Despite the pullback, the asset remains relatively stable and has avoided the sharp drawdowns seen in previous cycles.
Sideways Trading Defies Historical Trends
A flat first quarter would be unusual based on historical data. While January has typically produced modest returns, February and March have historically delivered double-digit gains. A sideways grind would therefore break with past seasonal performance.
Broader sentiment indicators continue to reflect risk aversion, with fear dominating market psychology since late last year. However, there are early signs of resilience, including renewed inflows into spot Bitcoin exchange-traded funds, suggesting institutional interest has not disappeared entirely.
While short-term expectations remain conservative, longer-term forecasts vary widely. If liquidity conditions improve and risk appetite returns, Bitcoin could still surprise markets later in 2026. For now, patience appears to be the dominant strategy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.