Capital inflows into the cryptocurrency market have experienced a significant decline, dropping by 63.3% since December 10, 2024. This downturn, reflected in the market’s overall realized value net position, signals a slowdown in market participation and liquidity. The total capital inflows have fallen from a high of $134.65 billion to just $43.37 billion by January 21, 2025. The sharp decline in capital flow suggests that investors are pulling back, which could have implications for market dynamics in the near term.