- Bitcoin dropped for four days straight, falling from $110K to $104K despite strong market optimism.
- If demand holds, BTC could rebound toward $109K; if recent buyers sell, a deeper correction may follow.
For the first time since March 2025, Bitcoin [BTC] declined for four consecutive days, slipping from $110K to a low of $104K.
However, despite the recent losses, market participants are more enthusiastic than ever before.
Inasmuch so, demand for Bitcoin is still rising. According to Cryptoquant’s analyst Axel Adler, BTC demand is nearing the peak levels of the previous bull market.
Fresh capital keeps flowing in
Source: CryptoQuant
Bitcoin saw over $1.8 billion in Net Capital Flows on the 29th of May, a figure not seen since the November 2021 bull market.
That inflow rivals past cycle tops, where capital peaked at $3.6 billion near $73K and hit $4.5 billion at $92K.
In fact, this persistent inflow—even at all-time highs—suggests investors expect higher levels ahead, not a market top.
Whales lead the charge
Source: Ali Martinez
This conviction is visible on-chain.
Whales have scooped up nearly 20,000 BTC over the last two days, while over 50,000 BTC exited exchanges—signaling accumulation, not distribution.
This massive accumulation is evidenced by the fact that the Bitcoin exchange netflow has remained negative for a whole for the first time in 2025.
Source: CryptoQuant
Seven consecutive days of negative net flow indicate that buyers have gained a strong foothold in the market. Despite Bitcoin’s upward trajectory, it appears that investors have been purchasing even as prices increase.
When Bitcoin dipped below $110,000, buyers took the opportunity to accumulate even more. This trend suggests that investors are willing to take positions regardless of whether the price of Bitcoin rises or falls.
Short-term pain, long-term conviction
Despite strong fundamentals, BTC’s price has declined. Yet, this pullback appears to be more macro-driven than sentiment-led.
Short Term Holder SOPR shows selling pressure remains muted, even though most are still in profit.
That suggests these holders are not panic-selling. Rather, they’re sitting tight, reinforcing the broader bullish structure.
Source: CryptoQuant
Most market participants are currently bullish, which suggests that the recent dip in prices is likely to be short-lived. This demand sets the stage for a market recovery, and Bitcoin may bounce back towards $109,493.
However, if the price continues to decline, it could create panic among those who purchased Bitcoin between $100,000 and $104,000.
If this group decides to sell to secure their gains, it could lead to a further decline in the market.
