• Crypto market capital inflows dropped from $8.20B to $2.38B between April 1 and April 18, marking a 70% contraction.
  
• Bitcoin and Ethereum’s net position change turned negative, suggesting possible distribution activity by long-term holders amid price stabilization.
  
• Stablecoin reserves increased steadily during this period, reflecting sidelined capital buildup and possible bullish momentum once conditions align.

The crypto market is currently witnessing reduced capital inflows, which have dropped from $8.20 billion to $2.38 billion since April 1.

Capital Inflows Decline While Prices Stabilize

According to data presented in a chart shared by crypto analyst Ali_chart, the net capital inflow across the crypto market has contracted by 70% over two weeks. This analysis, sourced from Glassnode covers Bitcoin (BTC), Ethereum (ETH), and stablecoins from April 1 to April 18, 2025.

Throughout the time span Bitcoin's value remained between $76,000 and $86,000. The Bitcoin value dropped to reach $76,000 during April 5 but then rebounded to maintain a position near $85,000 by April 18. After this recovery period the inflow of capital maintained its downward trajectory. Crypto market entry of fresh capital continues to decline while prices try to recover from previous drops.

Long-Term Holders Show Distribution Signals

The BTC and ETH net position change data shows a declining pattern, eventually entering negative territory around April 17 and April 18. This development points to possible distribution by long-term holders. The timing of this decline coincides with a period of market consolidation, potentially reflecting caution among seasoned participants.

While capital inflows fell, capital outflows spiked early in April. These outflows showed a mild tapering off toward mid-April. The divergence between inflows and outflows suggests strategic profit-taking or broader hesitation among investors after a volatile start to the month.

 Stablecoin Reserves Increase Amid Market Hesitation

The chart also reveals consistent strength in stablecoin net position changes. This trend shows a steady increase in stablecoin reserves throughout the observed time frame. Such accumulation often signals that buying power is building on the sidelines, potentially indicating future buying momentum once market conditions become more favorable.

Despite short-term uncertainty, the increased stablecoin liquidity presents a potential for renewed activity. Investors appear to be waiting for stronger directional confirmation before reallocating capital. The overall market picture reflects stabilization in prices, but with cautious sentiment lingering among both institutional and retail participants.

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