Bitcoin's market capitalization has decreased by $716 billion since reaching its all-time high of $2.486 trillion, now standing at $1.77 trillion. This decline is attributed to a slowdown in ETF inflows and weakened capital inflows, marking the first such occurrence in over two years. On-chain data indicates that realized capitalization has remained stagnant for nearly a month.
Despite these bearish indicators, retail investors have shown resilience, with buyers outnumbering sellers over the past three months. Options activity around the $90,000 and $85,000 levels has constrained price movements, with a $278 million gamma effect set to expire on December 26. According to Ki Young Ju of CryptoQuant, sentiment recovery in the market could take several months.
Bitcoin Market Cap Drops $716 Billion Amid Slowing Inflows
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