Bitcoin Network Sees Influx of Capital, Indicating Full-Blown Bull Market
According to on-chain analyst Willy Woo, the level of new capital flowing onto the Bitcoin (BTC) network suggests that the top cryptocurrency is currently experiencing a โfull-blownโ bull market. Woo recently shared on social media that daily inflows of capital being stored by the Bitcoin network have reached $2 billion per day, which is equivalent to the level seen during the last full-blown bull market.
Bull Market Indicators
- Woo states that the recent influx of capital onto the Bitcoin network indicates a full-blown bull market.
- He points out that spot ETFs are opening up the inflow pipes significantly, leading to higher levels of capital inflow.
- The inflows are measured on-chain, meaning they include all investors and are around 90% accurate.
- Woo also mentions that ETFs currently account for approximately 30% of total flows.
This surge in capital inflow suggests that Bitcoinโs current bull market is still in its early stages. Woo compares it to the $20,000 price level of the previous cycle, indicating that there is significant room for growth. He notes that during the last cycle, the upper bound price model for Bitcoin was not reached due to an influx of paper BTC, which is less dominant in this cycle. Paper BTC refers to derivatives that represent Bitcoin but do not involve actual ownership of the asset.
As of now, Bitcoin is trading at $72,804.
Hot Take: Bullish Outlook for Bitcoin
The recent increase in daily capital inflows onto the Bitcoin network is a strong indicator of a full-blown bull market. With spot ETFs opening up the inflow pipes and accounting for a significant portion of total flows, Bitcoin is poised for further growth. The current bull market is still in its early stages, and the upper bound price model suggests that Bitcoin could reach $337,000. Unlike the previous cycle, where the upper bound was not reached due to paper BTC dominance, this cycle is expected to experience higher levels of price appreciation. With Bitcoin trading at $72,804, there is ample room for further upside potential.