Bitcoin Inflow Drop Signals Sideways Q1 Ahead, Says CryptoQuant

• Bitcoin inflows weaken as investors shift toward equities and precious metals.
• Analysts warn of sideways trading and possible retests of lower price zones.
• Institutional ETF inflows stay strong, supporting long-term market confidence.

Bitcoin starts the new year with a relieved follow-up, as analysts point to decreasing inflows and changing investor behavior patterns. According to CryptoQuant CEO Ki Young Ju, capital flowing into Bitcoin has gone down. He also notes that demand for equities and precious metals has risen recently.

Ju states that inflows have gone dry compared to the previous times. He mentions increased activity in gold and silver. He states that the shift is indicating where investors are making new capital. He also feels that with this trend, Bitcoin does not have near-term price strength.

Source: X

At the time of writing, Bitcoin is trading at $89,868 and fell by 2.94% over the last 24 hours. The trading volume also decreases by 23.83%, and currently, it stands at $41.71 billion. Even though the demand conditions are softer, Ju says a severe drop will be unlikely.

Bitcoin Faces Flat Quarter as Analysts Highlight Growing Risks

He has forecasted sideways action through the first quarter. He describes this environment as boring and characterized by sideways action. The market isn’t indicating a hard rally or crash, Ju says.

This would be a muted first quarter in line with Bitcoin’s past. Recently, January has generally delivered more moderate growth, with average gains of 3.8% as far back as 2013.

Bitcoin could retest lower price levels, according to trader Peter Brandt. Fidelity’s Jurrien Timmer has referred to a potential return to the $60,000 to $65,000 range. Their projections have been added to a pile of more pessimistic predictions.

Also Read: Bitcoin (BTC) Slips Below Key 50-Day EMA, Analysts Warn of $90K Retest

There is also still caution in market sentiment. The Crypto Fear & Greed Index has been in the extreme fear zone since early November. On Thursday, the index had a reading of 28. Traders generally are not too keen to take extreme positions.

Source: Alternative.me

Institutional Demand Holds Steady Despite Market Caution

However, institutional involvement has not been lost. Spot Bitcoin ETF opened in 2026 with renewed inflows. They captured net additions of $925.3 million in the first three trading days, according to Farside Investors data. The levels indicate that interest is steady in the long term.

Other industry leaders remain optimistic about a prosperous year ahead. Tim Draper, a venture capitalist, reiterated that Bitcoin would reach a price of $250,000. Bitwise researcher Ryan Rasmussen is optimistic that the asset may break its 4-year historical trend. They both believe that the long-term fundamentals are still supportive.

Abra CEO Bill Barhydt brings another perspective. He states that Bitcoin can benefit from a change in monetary policy to more relaxed policies. As he pointed out, the US central bank has already signaled some preliminary steps in the direction of a more relaxed policy.

Also Read: Ethereum Technical Outlook Shows Support Holding and Targeting $3700