Bitcoin’s 85K Bounce? What’s the Deal Here?

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Amid a broader market slump, Bitcoin fell to April 2025 levels, reaching a low of $75,519 before slightly recovering. As of this writing, BTC traded at $78,862, down 4.61% on the daily charts and 10% on weekly charts. It’s like the weather report that keeps changing its mind-one minute sunny, the next something ominous about the crypto forecast. And yes, the headlines are screaming, but the punchline is just that it’s not exactly room service on a silver platter.

Amid this prolonged downtrend, BTC has experienced reduced investor appetite, with traders taking a step back and others reducing exposure. I mean, who hasn’t paused to ask, what’s the deal with all this volatility?

Bitcoin capital inflow dries up

According to Ki Young Ju, Realized Cap has flatlined, indicating no fresh capital has flowed into Bitcoin recently. The reality check: capital flows into Bitcoin have almost entirely dried up. The analyst noted that when market capitalization declines in that environment, it signals the market is in a deep bearish zone. It’s like the party’s over and everyone forgot to tell you.

Bitcoin [BTC] experienced substantial capital inflows due to continued accumulation by Strategy (formerly MicroStrategy) and Spot ETFs.

In fact, MSTR added 523k BTC between 2024 and 2026, a jump from 189k to 712k, thereby increasing demand for Bitcoin. It’s the kind of move that makes you say, “Really? That’s your plan?”

During this period, MSTR pumped more than $50 billion into Bitcoin without any outflows, thereby strengthening its demand side. It’s almost obnoxiously confident, isn’t it?

At the same time, the approval of ETFs led to substantial capital inflows into Bitcoin, with total assets exceeding $100 billion. These strong capital inflows from institutional investors kept BTC prices elevated, and now these inflows have dried up. Classic run, folks.](

Selling pressure dominates the market

While capital inflows have dried up, selling pressure has persisted from both retail and institutional investors. It’s the old joke-when the money person leaves, the other people start selling for reasons that sound like they were learned in a seminar titled “How to Exit Gracefully.”

For starters, outflows have dominated the ETFs market, with outflows hitting $1.3 billion between the 29th and 30th of January. The trend has remained significant, with net inflows occurring only once in the past ten days.

Such a sustained period of outflows suggests that institutional investors have widened and reduced their exposure. It’s like they’re saying, “We’ll invest in something else that isn’t in the mood today.”

Moreover, exchange activities have signaled this distribution phase. According to CryptoQuant data, Bitcoin recorded higher inflows for the past three consecutive days.

At press time, Exchange Netflow was 9.5k BTC, a significant jump from 3.7k BTC from the previous day. Over this period, over 87k BTC was sold on exchanges, a clear sign of aggressive spot dumping. And here we were hoping for a calm Tuesday.

Is the bottom in yet for BTC?

Bitcoin dropped below $80k, amid a cascade of liquidations. According to CoinGlass, Bitcoin experienced significant liquidation, with $736 million in long positions liquidated. It’s the kind of liquidation that makes you wonder if you should have just stayed in bed.

As a result, downside momentum accelerated as holders panicked and exited the market. As such, Bitcoin’s Stochastic Ergodic Indicator made a bearish crossover and fell deeper into negative territory to -0.46.

A dip to such lower levels suggested strong downward momentum, with buyers totally displaced from the market and sellers having total control. It’s like a game of tennis where the ball keeps going out and no one can score.

Such market conditions positioned BTC for potentially more losses on its price charts. Thus, if sellers continue to offload, BTC will likely continue to trade below $80k.

Looking at the Future Grand Trend indicator, BTC is positioned for a prolonged period of weakness with $76k as key support. For a bullish case into early February, Bitcoin could jump to $85k to $92k, before retracing again. Or not. It’s a status update, really.

Final Thoughts

  • Bitcoin [BTC] fell to a 9-month low of $75,519, then rebounded to $78k by press time.
  • Bitcoin faced prolonged weakness amid reduced fresh capital inflow and persisting selling pressure.

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2026-02-02 07:13