Bitcoin Capital Inflows See Notable Slowdown, But Is This A Worry?
On-chain data shows that inflows into Bitcoin have slowed since last year’s highs. What this could mean for the price of BTC.
Bitcoin has reached a cap and continues to grow, albeit at a slower pace
According to data from on-chain analytics companies glass nodeInflows into BTC have been declining recently. The correlation metric here is “Cap achieved,” which is Bitcoin’s capitalization model that calculates its total valuation by assuming that the “real” value of any token in circulation is equal to the price at which it was last traded on the blockchain.
The last transaction for any coin can be considered the last point at which it changed hands, so the price at that time will represent its current price cost basis. Therefore, the realized cap is taken as the sum of the cost basis of the entire supply of BTC in circulation.
This value is nothing but the total amount of money that investors as a group have used to purchase cryptocurrencies. Therefore, changes in this indicator reflect capital flowing into or out of the asset.
Below is a chart of realized caps shared by the analytics firm, showing the trend in daily value over the past few years and the 30-day percentage change.
As the chart shows, Bitcoin’s realized cap has seen a sharp increase in the final months of 2024, meaning capital is flowing into the cryptocurrency at a rapid pace.
This is easier to see through the monthly percentage change, which spiked to very high positive levels. These inflows appear to be fueling Bitcoin’s rally assembly Over $100,000.
It is evident from the chart that after reaching the peak, the 30-day change in the realized cap reversed direction and began a sharp decline. The downward trend of this indicator continues until 2025.
Despite the retracement, its value remains quite positive, indicating that realized caps continue to grow at a significant rate. A similar trend has emerged in the first few months of 2024, with capital inflows peaking and then cooling, causing Bitcoin to enter a lengthy period of consolidation.
So far, funds are still flowing into BTC at a monthly rate of $38.6 billion, which is significantly higher than 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 if there will be a reversal, which could become a bullish sign for the asset.
With the latest round of capital inflows, Bitcoin has hit the $832 billion mark, setting a new all-time high.
bitcoin price
Bitcoin has struggled to pick a direction over the past few days as its price remains around $104,000.
