BTC falls as new capital inflows stall, early investors take profits

Bitcoin has fallen to the $78,000 level due to a halt in new capital inflows and profit-taking by early holders, Coindesk analyzed. Ki Young Ju, CEO of CryptoQuant, noted that Bitcoin's realized capitalization has stagnated, indicating a lack of new capital. He explained that early holders, who have significant unrealized profits thanks to buying from spot ETFs and Strategy (MSTR), have been realizing gains since early last year. While fund inflows and Strategy's purchases were key drivers of the rally, that momentum has paused. Ki predicted that Bitcoin is unlikely to crash unless Strategy engages in a large-scale sell-off of its holdings. According to data from BitcoinTreasuries, Strategy holds 712,647 BTC at an average purchase price of $76,040 and is currently up approximately 2.35% on its investment. On Feb. 2, BTC briefly touched $75,700, dipping below Strategy's average price. It is currently trading at $77,900, up 1.19% from the previous trading day.