Bitcoin has experienced its first four-day losing streak since March 2025, dropping from $110,000 to $104,000.
Despite the price drop, investor enthusiasm and demand for Bitcoin remain robust, with capital inflows reaching levels not seen since the last major bull market.
Large investors, or “whales,” are accumulating Bitcoin, and exchange outflows indicate strong buying activity.
The recent price dip appears to be driven by broader macroeconomic factors rather than a shift in market sentiment.
Most holders remain confident, with little evidence of panic selling, suggesting the market could recover soon.
Market Overview: A Surprising Surge in Demand Amid Price Decline
Bitcoin’s recent price action has caught the attention of the entire crypto community. For the first time in months, the world’s leading cryptocurrency has posted four consecutive days of losses, tumbling from a high of $110,000 down to $104,000. This correction, while notable, has not dampened the spirits of market participants. In fact, the current environment is marked by a surge in optimism and a remarkable increase in demand.
What’s particularly striking is that, even as prices have pulled back, the appetite for Bitcoin continues to grow. Analysts are observing that demand is approaching the feverish levels last seen during the previous bull market. This suggests that, rather than signaling the end of a cycle, the recent dip may be setting the stage for renewed momentum.
Capital Inflows: New Money Powers the Market
One of the most telling signs of market strength is the influx of fresh capital. On May 29th, Bitcoin recorded over $1.8 billion in net capital inflows—a figure that rivals the peaks of previous bull runs. These inflows are reminiscent of the November 2021 surge, when capital entering the market reached historic highs.
What makes this development even more significant is that such robust inflows are occurring at or near all-time price highs. Historically, capital inflows of this magnitude have coincided with major market tops. However, the persistence of these inflows, even as Bitcoin hovers near record levels, suggests that investors are positioning themselves for further gains rather than preparing to exit.
Whale Activity: Accumulation Signals Confidence
The conviction of large-scale investors is another critical factor shaping the current market landscape. Over the past two days, whales have accumulated nearly 20,000 BTC, while more than 50,000 BTC have been withdrawn from exchanges. This pattern of accumulation, rather than distribution, is a powerful indicator of confidence among major players.
For the first time in 2025, Bitcoin’s exchange netflow has remained negative for an extended period, underscoring the strength of buyer demand. Seven consecutive days of negative netflow highlight that investors are not only holding onto their assets but are actively acquiring more, even as prices fluctuate. This behavior points to a market that is being steadily absorbed by committed buyers.
Investor Psychology: Resilience in the Face of Volatility
Despite the recent price correction, the underlying sentiment among Bitcoin holders remains overwhelmingly positive. Short-term holders, who are often the first to react to market volatility, are showing little inclination to sell. The Spent Output Profit Ratio (SOPR) for these investors indicates that most are still in profit, and selling pressure remains subdued.
This resilience suggests that the current pullback is more a function of external macroeconomic factors than a loss of faith in Bitcoin’s long-term prospects. Investors appear to be taking advantage of lower prices to increase their positions, rather than rushing for the exits. This dynamic reinforces the broader bullish structure of the market and sets the stage for a potential rebound.
Potential Risks: What Could Trigger Further Downside?
While the overall outlook remains constructive, there are risks that could lead to further declines. If Bitcoin’s price continues to fall, especially below the $104,000 mark, it could unsettle those who bought in the $100,000 to $104,000 range. Should this group decide to lock in profits or cut losses, a wave of selling could ensue, amplifying downward pressure.
However, as long as demand remains strong and capital continues to flow into the market, any such correction is likely to be temporary. The willingness of investors to buy both on the way up and during pullbacks is a testament to the enduring appeal of Bitcoin as a store of value and speculative asset.
Conclusion
In summary, Bitcoin’s recent four-day slide has done little to dampen the enthusiasm of market participants. On the contrary, demand is surging, capital inflows are robust, and large investors are accumulating at a rapid pace. While short-term volatility may persist, the underlying fundamentals point to a market that is both resilient and poised for further growth. As long as these trends continue, Bitcoin’s long-term trajectory remains firmly upward, with the potential for new highs on the horizon.
