Bitcoin demand has sharply declined as fresh capital into the asset flatlines, with on-chain data indicating the market has entered a defensive bear phase. CryptoQuant reported that Bitcoin’s realized capitalization has stopped growing, suggesting that new money is no longer entering the ecosystem to support current price levels.
This lack of appetite coincides with a shift in institutional behaviour, as U.S. spot Bitcoin ETFs recorded net outflows of 10,600 BTC so far in 2026, contrasting sharply with the heavy accumulation seen throughout the previous year.
Bitcoin: Lack of Fresh Capital Reinforces Bear Conditions
“New investor inflows have flipped negative. The sell-off is not being absorbed by fresh capital. In bull markets, drawdowns attract accelerating capital. In early bear markets, weakness triggers withdrawal.” – By… pic.twitter.com/fVMbjPJOpv
— CryptoQuant.com (@cryptoquant_com) February 10, 2026
Institutional appetite fades amidst macro stress
Supporting data from CryptoQuant’s weekly report shows a significant demand gap compared to 2025, when ETFs were purchasing tens of thousands of Bitcoin per month. The current market structure appears weak, with the Coinbase Premium Index, a key measure of U.S. investor demand, remaining largely negative or stagnant.
The contraction is further evidenced by a decline in stablecoin liquidity; the market capitalization growth of USDT has turned negative for the first time since late 2023. Analysts suggest that capital is rotating toward more defensive assets, such as the U.S. dollar, as global risk appetite diminishes.
Technical breakdown signals further downside risk
Bitcoin’s price recently fell below its 365-day moving average for the first time since March 2022, a technical milestone that often precedes extended bearish cycles. This price action has pushed market sentiment into “extreme fear,” with the Fear and Greed Index dropping to 9 points.
Meanwhile, ING Deutschland recently began offering regulated crypto exposure via ETNs in Germany to bridge the gap for retail investors. However, even with improved access, Bitcoin continues to trade as a liquidity-sensitive risk asset rather than a safe haven, remaining highly correlated with declining technology stocks.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads, and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
