On-chain data shows that capital inflows into Bitcoin have slowed since their highs last year. Here’s what this could mean for the price of BTC.
The real value of Bitcoin continues to grow, albeit at a slower rate
According to data from the on-chain analytics company Vitreous nodeHowever, capital inflows into BTC have declined recently. The relevant indicator here is “realized cap,” which is a capitalization model for Bitcoin that calculates its overall valuation by assuming that the “true” value of any traded token is equal to the price it was last transacted on the platform. blockchain.
The last transaction of any token can be considered the last point at which it changed hands, so the price at its time will indicate the current cost basis. As such, the maximum achieved takes the total amount of cost basis for the entire BTC supply in circulation.
This value is nothing but the total amount of capital that investors as a whole used to purchase the cryptocurrency. Thus, changes in the index reflect the flow of capital into or out of the asset.
Below is the chart of realized cap shared by the analytics firm, which shows the trend in its daily value, as well as the 30-day percentage change, over the past two years.
As shown in the chart, the realized value of Bitcoin observed some sharp growth during the last two months of 2024, meaning that capital has been flowing at a rapid rate into the cryptocurrency.
This can be seen most easily from the monthly percentage change, which has risen to a very high positive level. These inflows appear to have provided fuel for BTC’s surge above $100,000.
From the chart, it seems clear that after reaching the peak, the 30-day change in the maximum achieved reversed its trend and started to decline in a sharp manner instead. This decline in the scale continues until 2025.
Despite the decline, its value is still very positive, indicating that the realized maximum continues to grow at a noticeable rate. We have also seen a similar trend in the first few months of 2024, where rising capital inflows were followed by a slowdown, leading to a long period of consolidation for Bitcoin.
To date, capital is still flowing into Bitcoin at a rate of $38.6 billion per month, which is well above the lows observed during the sideways phase last year. It now remains to be seen whether inflows will continue to decline in the coming days, or whether a reversal will occur, which could serve as a bullish signal for the asset.
After the recent series of inflows, the real value of Bitcoin has reached $832 billion, a new all-time high.
Bitcoin price
Bitcoin has had a hard time choosing a direction over the past few days as its price is still trading around the $104,000 level.
