Bitcoin: Assessing whether a surge in capital inflows influenced BTC price
July 19, 2023
By Adewale Olarinde
Read Bitcoin (BTC) Price prediction 2023-24
BTC realized cap was close to 400 billion as inflow increased.
BTC NRPL showed profit as BTC traded above $30,000.
The value of Bitcoin has surged, attracting a growing interest in acquiring it, as evident from the influx of capital it has received. Considering the substantial inflow of BTC, what is the current profitability or potential loss status?
Bitcoin realized cap shows a consistent inflow
Glassnode recently shared a post revealing that Bitcoin has been experiencing a notable influx of capital as more users flocked to acquire this digital asset. As of this writing, the Realized Cap has surpassed a staggering $394 billion, indicating a consistent flow of capital into Bitcoin throughout 2023.
This upward trend in the Realized Cap suggests that coins are changing hands at higher prices overall, which implies a modest increase in new demand for Bitcoin this year.
It’s worth noting that during bear markets, Bitcoin typically witnesses significant capital outflows as investors attempt to mitigate their losses. However, the current scenario portrays a different picture, with capital flowing into the asset.
The Realized Cap, one of the oldest and most widely observed on-chain metrics, is a powerful tool for evaluating the genuine capital inflows into Bitcoin. Given the amplified capital flow, it prompts us to consider the profitability of this asset.
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