Crypto Capital Inflows Crash 80% — Here Is Why the Entire Market Feels “Out of Sync”

3 weeks ago 10
  • Crypto capital inflows dropped over 80%, leaving the market without a clear bullish or bearish signal.
  • Wallet behavior shows fragility, with whales slowing accumulation while smaller wallets step in cautiously.
  • Bitcoin lost market leadership after breaking key support, shifting momentum toward altcoins.

The crypto market just went through one of those weird, uncomfortable phases where everything feels like it’s slowing down at the same time. Capital inflows basically collapsed, wiping out more than 80% of the participation that was pushing prices around earlier in the fall. Traders keep staring at charts, waiting for some kind of loud signal… but the market keeps whispering instead, drifting in this foggy zone with no real conviction anywhere.

A Market Running Out of Energy

Analyst Ali Martinez highlighted how inflows fell from nearly $60 billion in early October to barely $10 billion by the end of November — a massive reset that sucked momentum straight out of the room. Fear is still dominating too; the Fear and Greed Index is stuck around 20, showing just how uneasy investors have become after Bitcoin briefly dipped near $80K earlier this month. What looked like a promising bounce last week didn’t hold either. Santiment pointed out that the oversold conditions that sparked the rally faded instantly, and the “buy the dip” attitude evaporated into hesitation. Ethereum hit resistance at $3,200–$3,250, a level that now feels like a brick wall traders aren’t eager to slam into again.

Fragile Wallet Behavior Says a Lot

Large Bitcoin wallets eased up on accumulation, while smaller wallets increased theirs — a pattern that usually hints at a fragile, unsure market. Stablecoin yields around 4% show low leverage demand too, meaning fewer people are willing to take risks right now. Earlier in the month, a big spike in debt repayment actually marked a clean local bottom, but this week… nothing. Debt flows are flat, with no panic and no confidence, just silence. Santiment said it plainly: when nothing stands out, sometimes the best move is to just step aside.

Bitcoin Drops the Baton as Altcoins Take the Lead

Swissblock’s Bitcoin Vector noted that once Bitcoin broke through its key structural support, the whole market dynamic shifted. Bitcoin lost leadership almost instantly, and momentum rotated into altcoins — especially the speculative mid-caps. Larger caps became the “safer” corner, while BTC dominance kept sliding, pushed down by heavy selling and weak conviction from investors.

Bitcoin regains its lead only if it can rebuild dominance steadily over time. Until then, the market stays fragile, uneven, and driven by selective rotations rather than strong, broad bullishness.

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