Bitcoin (BTC) absorbed $308 billion in new capital throughout 2025 yet its Market Cap still declined by $98 billion, a divergence that CryptoQuant founder Ki Young Ju says proves the cryptocurrency is "not pumpable" under current market conditions.
What Happened: Market Cap Defies Capital Inflows
Ki Young Ju laid out his case in a post on X, pointing to the widening gap between Bitcoin's Market Cap and its Realized Cap. The Market Cap measures total supply value at the current spot price, while the Realized Cap estimates total valuation based on the price at which each coin last moved on-chain — effectively tracking aggregate investor cost basis.
In mid-2025, Market Cap was growing faster than Realized Cap, a signal that incoming capital was amplifying overall valuation. That relationship reversed in the final quarter as a market downturn pushed the growth rate differential into negative territory, and the metric has continued to fall into 2026.
The contrast with 2024 is stark.
Back then, a $10 billion Realized Cap increase produced a $26 billion jump in Market Cap — the kind of multiplier effect that drives rallies.
"Selling pressure is too heavy for any multiplier effect," Ki Young Ju wrote.
Separately, CryptoQuant community analyst Maartunn flagged that so-called "New Whales" — investors who entered the market within the past 155 days and hold more than 1,000 BTC — have been capitulating during the recent drawdown, including a single-day loss-taking spike of $1.46 billion on Feb. 5.
Also Read: Ethereum Stalls Below $2,050 As Bears Tighten Grip
Why It Matters: Selling Pressure Overwhelms Demand
The Realized Cap is widely treated as a proxy for capital inflows and outflows, making the current divergence significant. When hundreds of billions of dollars flow in without lifting the Market Cap, it suggests that existing holders are distributing at a pace that offsets new demand entirely.
Ki Young Ju's data implies that Bitcoin may need a meaningful shift in sell-side dynamics — not simply more buying — before price can respond to fresh capital the way it did in prior cycles. For now, every dollar entering the market is being absorbed by sellers rather than translating into higher valuations.
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