Bitcoin’s Realized Cap flow turns negative, the first instance since late 2025, signaling capital outflow and weakening accumulation.
Long-term holders (LTHs) are realizing growing losses, a behavior linked to market fatigue seen before past cycle bottoms.
BTC’s tight trading range around $55,000 reflects psychological exhaustion and reduced momentum into early 2026.
The ever-volatile world of cryptocurrency, Bitcoin (BTC) is showing signs of strain as 2026 kicks off. According to recent on-chain analysis from Glassnode, the monthly pace of capital netflow into Bitcoin—measured by the 30-day change in Realized Cap—has turned negative for the first time since late December 2025. This shift marks the end of one of the longest uninterrupted periods of positive capital inflows in Bitcoin’s history, a trend that had fueled optimism through much of the previous bull cycle.
Long-Term Holders Start to Show Signs of Capitulation
Glassnode’s data highlights a concerning alignment: this deceleration in inflows is happening alongside an uptick in loss realization by long-term holders (LTHs). These investors, who typically hold BTC for over 155 days, are known for their resilience during market downturns. However, the 30-day moving average of realized losses by LTHs and short-term holders (STHs) reveals spikes that echo past bear markets.
The deceleration in capital inflows has coincided with long-term holders increasing their loss realization.
This structure is unfolding while price trades within a compressed range. This reflects growing time-based investor fatigue, a common characteristic of extended bearish… https://t.co/wdC5lQF9TN pic.twitter.com/2XXK0m4QoL
— glassnode (@glassnode) January 2, 2026
The chart illustrates aggregate losses in blue bars, with LTH contributions in blue lines and STH in red, overlaid against BTC’s price in black. Notable peaks occurred during the 2018 crash, the 2022 bear market, and now a fresh surge in late 2025 into 2026, where LTH losses have climbed sharply even as prices hover in a compressed range around $50,000 to $60,000.
This structure suggests “time-based investor fatigue,” a phenomenon where prolonged sideways or downward movement erodes confidence, prompting even steadfast holders to capitulate. In extended bearish phases, such fatigue often precedes market bottoms, as exhausted sellers hand over supply to new accumulators. Yet, it’s a double-edged sword—while it signals pain, it could also clear the path for recovery if external catalysts like regulatory clarity or institutional adoption emerge.
The Psychology of Fatigue: Pain Before Market Bottoms
Short-term holders, often more reactive, contribute to the red spikes, but the LTH shift is particularly telling. Aggregated losses have hit levels not seen since the 2022 lows, when BTC dipped below $20,000 before rebounding. With prices trading in a tight band, this reflects not just price pressure but psychological weariness among participants.
Looking ahead, on-chain metrics like these are crucial for gauging sentiment. If inflows resume and losses taper, BTC could break out upward. For now, though, the data paints a picture of caution: patience is key in crypto’s cyclical game. Investors should monitor Realized Cap trends closely, as they often foreshadow major shifts. As Bitcoin navigates this fatigue phase, the market watches for signs of reversal in 2026.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
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