Bitcoin might still enter another major bull cycle, but the amount of money needed to fuel it has grown dramatically compared to previous bull markets, according to the CEO of CryptoQuant, Ki Young Ju.
In a recent thread, he argued that the cryptocurrency’s capital efficiency has declined considerably as the asset has matured.
In 2011, he said, roughly $2.7 billion in net capital inflows was enough to drive a rally of more than 55,000%. In the current cycle, however, around $697 billion in inflows produced a return of slightly less than 700%.
The main takeaway is quite simple: Bitcoin is much larger now compared to before, and moving its price requires far more capital.
Bitcoin’s Next Parabolic Move May Need Trillions
Market cycles are interesting, and all of them, despite some similarities, are quite different.
According to Ju, in 2011, only $5 million in net inflows was enough to double BTC’s price. In this cycle, that figure increased to roughly $101 billion. He believes that the next parabolic run would likely require trillions of dollars in net capital inflows.
Of course, this doesn’t mean that upside is impossible; it just suggests that the asset may need a deeper institutional bid than in the previous cycle.
The analyst also framed the issue in terms of Bitcoin’s realized capitalization. This is a metric that values each coin based on the price at which it last moved on-chain rather than simply mutliplying the current spot price by its circulating supply.
Ju said that if Bitcoin can absorb upwards of $1 trillion in realized cap, another parabolic rally remains possible. In practical terms, though, this would require the cryptocurrency to move beyond a retail-led ETF trade and become an established macro allocation for funds, corporations, institutions, and possibly even sovereign entities.
He noted that this shift is still early and hasn’t been invalidated yet.
Gold Comparisons: The Size of the Opportunity?
The comparison with gold remains central to Bitcoin’s long-term investment thesis. The current market cap of the precious metal, according to popular estimates, is $29 trillion, although keep in mind that this figure can vary depending on the assumed above-ground supply.
By contrast, Bitcoin’s market cap is $1.25 trillion, at the time of this writing.
This gap remains the reason some analysts still see significant room for Bitcoin to grow as institutional adoption expands. Of course, it also highlights the challenge – every new cycle will likely require considerably larger pools of capital than the last.
Postul How Much New Money Does Bitcoin Need to Start a Fresh Bull Run? (It’s a Lot) a apărut prima dată pe CryptoPotato.














Lasă un răspuns