How Much New Money Does Bitcoin Need to Start a Fresh Bull Run?


(It's a Lot)
CryptoQuants CEO Ki Young Ju says that Bitcoin may still have another parabolic cycle ahead, but it will likely require a considerable amount of institutional-scale capital inflows.
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.
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GateUser-83c80dd0
· 3h ago
700% return is actually not bad, but everyone has been spoiled by early myths.
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LatencyLullaby
· 3h ago
Want to know if he calculated net inflow or gross inflow, the definition difference is very large.
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MinimalistSculpturePedestal
· 3h ago
Trillions of dollars... equivalent to half of Apple's market cap, BTC is really going to become a macro asset.
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StrollingOnTheEdgeOfTheDao
· 3h ago
The decline in capital efficiency is the fate of mature assets. BTC is no longer the wild child that could be pumped with just a few billion.
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BluePeonyDarkroom
· 3h ago
2.7B→55,000% vs 697B→700%, this comparison is heart-wrenching. Institutional money doesn't just blow in from nowhere.
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MevTeaDrinker
· 3h ago
Institutional inflows mean volatility will come down, and the era of skyrocketing and plunging is over.
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PerpMoodSwing
· 3h ago
So the signal for the start of the next bull market might be a sovereign fund officially announcing its entry?
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GlassDomeObservatory
· 3h ago
The law of diminishing capital efficiency is common sense for traditional finance people, but a new lesson for the crypto circle.
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