Bitcoin Rebounds Supported by Nearly $19 Billion in Cryptocurrency Inflows, According to Data

Data on the blockchain indicates that the overall cryptocurrency market has experienced an influx of nearly $19 billion, coinciding with a recovery phase for Bitcoin and other cryptocurrencies.

The Crypto Market Sees Positive Capital Movements Recently

Analyst Ali Martinez recently shared insights regarding the growing trend of capital inflows into cryptocurrencies. Within the digital asset world, funds predominantly circulate through three primary classes: Bitcoin, Ethereum, and stablecoins, while altcoins tend to see capital rotation primarily from these major cryptocurrencies.

Thus, analyzing the net flows associated with Bitcoin, Ethereum, and stablecoins can offer a solid approximation of the overall state of the cryptocurrency market.

To assess capital movements for Bitcoin and Ethereum, the “Realized Cap” metric can be utilized. This model calculates the total value of an asset’s supply by considering the last transaction price of each token, distinguishing it from the conventional Market Cap, which uses the current market price.

Essentially, the Realized Cap illustrates the total investment made by cryptocurrency investors, meaning that fluctuations in this metric indicate whether there is a capital influx or outflow.

For stablecoins, changes in Market Cap effectively measure capital net flows, since the Realized Cap aligns with Market Cap due to stablecoins being pegged to fiat currencies, thereby maintaining a stable price.

The following chart illustrates the 30-day netflow trend for the cryptocurrency market, based on the indicators mentioned:

The chart indicates that the combined 30-day Realized Cap change for Bitcoin and Ethereum is currently a positive $12.58 billion, signifying a significant net capital influx for these two cryptocurrencies over the past month.

Additionally, stablecoins have recorded a net inflow of $6.19 billion during the same timeframe, suggesting the digital asset sector as a whole has welcomed approximately $18.77 billion in new capital.

This trend aligns with Bitcoin and other assets undergoing price recoveries, indicating that as long as these inflows persist, the ongoing rallies might be sustainable.

However, it remains to be seen how investor sentiment will shift in the near future, as it often takes little to provoke changes in mood within the cryptocurrency landscape.

Current Bitcoin Pricing

As of now, Bitcoin is trading at around $94,200, reflecting a 1% decrease over the past week.