Opinion: The simple mode of Bitcoin is over, the next bull market requires trillion-dollar level institutional funds.

ME News message. On July 1 (UTC+8), CryptoQuant CEO Ki Young Ju pointed out that Bitcoin’s capital efficiency is declining significantly. In 2011, only a net capital inflow of $27 billion was needed to drive a price surge of 55,436%, while in the current cycle there have already been net inflows of $697 billion, which have only brought a 689% increase. A more intuitive comparison is that the realized market cap required for Bitcoin’s price to double has ballooned from only about $5 million in 2011 to about $101 billion in this cycle—an efficiency decline of over 2,000 times. “Realized market cap” refers to the actual capital absorbed on-chain based on the last moving price, not the theoretical market cap formed by the order book, and therefore reflects more accurately the volume of capital that has entered.

Despite the seemingly grim data, Ki Young Ju remains optimistic about BTC, believing that the next parabolic bull market needs deeper institutional allocations—Bitcoin cannot be driven only by retail investors and ETFs; it must become a core macro asset, and this transition is still at an early stage. Ki Young Ju noted that if Bitcoin can absorb more than $1 trillion in realized market cap, another parabolic bull market would still be within the realm of possibility. Compared with gold’s market cap of about $27 trillion, there is still enormous room for the large-scale institutional adoption of Bitcoin. The next round of a major bull market will require net capital inflows on the scale of several trillion dollars. The “simple mode” is over, but the “institutional mode” has only just begun. (Source: BlockBeats)