Fresh capital is no longer flowing into Bitcoin markets, raising concerns that the recent price decline could mark the early stages of a bear market, according to on-chain analytics firm CryptoQuant.
The firm said new investor inflows have turned negative, meaning selling pressure is no longer being absorbed by fresh demand. In a note, CryptoQuant warned that this pattern is typical of early bear markets, where price weakness leads investors to withdraw rather than buy into dips.
Bitcoin has fallen about 23% over the past 80 days after dropping below its 365-day moving average for the first time since 2022. Analysts say this technical break, combined with weak inflows, suggests the market is struggling to find support.
Risk-adjusted returns have also deteriorated. Measures such as the Sharpe ratio have moved into ranges historically linked to late bull-market downturns or prolonged bear phases. Spot and institutional demand remain subdued, reinforcing concerns that the sell-off could persist.
Broader crypto markets are also under pressure. Bitcoin was trading near $68,979, down roughly 2% over 24 hours and about 12% over the past week. Ethereum fell to around $2,013, while Solana traded near $86, both posting notable weekly losses.
CryptoQuant said the next phase will depend on whether demand returns. Without a clear recovery in inflows, the firm warned that the current pattern of declining prices and investor withdrawal could develop into a sustained bear market.
