CryptoQuant Sounds Alarm: Bitcoin’s Inflow Drought Signals Prolonged Sideways Trading Ahead

Bitcoin's price engine is sputtering. Fresh capital inflows—the lifeblood of any bull run—are drying up, threatening to trap the flagship crypto in a frustrating holding pattern.

The Flow Tells the Story

Forget the hype and the headlines. The real narrative is written in the on-chain data, and right now, it's sketching a picture of stagnation. New money isn't rushing into Bitcoin wallets at the pace needed to fuel a decisive breakout. Without that sustained buying pressure from new entrants, even the most ardent bulls struggle to push prices meaningfully higher.

It's a classic liquidity squeeze. The market feels like it's waiting for a catalyst—a macro shift, a regulatory green light, or maybe just a wave of FOMO from traditional finance giants who are still 'evaluating the space' over their third espresso.

Patience is a Trader's Weapon

This isn't a crash signal; it's a consolidation alert. Sideways action shakes out weak hands and builds a stronger foundation for the next leg up. For savvy investors, periods like this are for accumulation, not panic. The key is watching the flow metrics for the first sign of a renewed tide.

So, buckle up for potential boredom. The rollercoaster has hit a flat stretch, and the next big move hinges on capital finally deciding that digital gold is a better bet than whatever the old-guard financiers are currently overcharging for.

TLDR

• CryptoQuant CEO Ki Young Ju said Bitcoin may trade sideways through the first quarter of 2026.
• He explained that capital inflows into Bitcoin have slowed as investors shift focus to equities and precious metals.
• Bitcoin was trading around $90,900 at the time of the statement and was down over 2 percent on the day.
• Historical data shows Bitcoin usually posts gains in early months but that trend may not continue this year.
• Analysts Peter Brandt and Jurrien Timmer warned that Bitcoin could revisit the $60,000 to $65,000 range.

Bitcoin could face a flat start to 2026 as capital inflows weaken, shifting attention to equities and precious metals, according to CryptoQuant. The firm’s CEO, Ki Young Ju, said Bitcoin might trade sideways through the first quarter, lacking strong buying momentum. Institutional inflows remain, but recent data signals traders remain cautious while long-term holders remain optimistic.

CryptoQuant Expects Weak Q1 Momentum for Bitcoin

CryptoQuant CEO Ki Young Ju said on Wednesday that bitcoin is unlikely to see sharp price moves early this year. He pointed to slower capital inflows as a key factor behind the expected lack of volatility. “Capital inflows into Bitcoin have dried up,” Ju stated, highlighting the recent rotation toward stocks and metals.

Bitcoin was trading NEAR $90,900 at the time, down 2% on the day, with a recent high of $94,400. Although past Januarys have delivered gains, Ju expects lower activity and less movement this time.

He said, “The market is more likely headed for boring sideways trading.”

While past years saw average January returns of 3.8%, Ju believes those trends may not hold in 2026. February and March have previously averaged 13.1% and 12.2% returns, according to CoinGlass. But those patterns may break if investor interest continues shifting.

Analysts Signal Possibility of Short-Term Pullbacks

Veteran trader Peter Brandt and Fidelity’s Jurrien Timmer both expect price dips in the coming months. They warned Bitcoin could revisit the $60,000–$65,000 zone during the year. These forecasts align with weak sentiment data across the market.

The crypto Fear & Greed Index scored 28 on Thursday, marking a continued trend in the “fear” range. It has stayed between fear and extreme fear since November 2025. This reading suggests traders remain hesitant even after last year’s rally.

Despite this, some metrics show ongoing institutional support for Bitcoin ETFs. Farside Investors reported $925.3 million in net ETF inflows during the first three trading days of 2026. This points to interest from long-term investors, even as short-term sentiment fades.

Long-Term Bulls Still Back High 2026 Bitcoin Price

Tim Draper repeated his $250,000 price target, saying Bitcoin remains on track for a breakout year. He has maintained this forecast despite past volatility and slow starts. His stance reflects ongoing Optimism among long-term holders.

2026 will be big. #Bitcoin goes mainstream. My $250k prediction finally reached. IPO window opens with a $trillion company. Space flight to the moon for passengers. Bio-Cures drive longer lives. Autonomous vehicles MOVE us around the roads and in the air. Amazing! Awesome!…

— Tim Draper (@TimDraper) January 7, 2026

Bitwise’s Ryan Rasmussen argued that Bitcoin could break from its usual four-year cycle this year. He expects the price to push past past highs, potentially rewriting expectations. This view differs from those who see limited price movement in early 2026.

Abra CEO Bill Barhydt added that looser monetary policy may support Bitcoin gains this year. He said the Federal Reserve is already preparing to ease conditions. This may increase liquidity and bring renewed interest in crypto markets.

Barhydt believes easier policy could drive fresh capital toward digital assets by midyear. For now, Bitcoin trades between $90,000 and $94,000.