Bitcoin Flashes Bull Market Signal Amid Fresh ETF Inflows: Cryptoquant CEO - Cryptonews.net
Bitcoin is attracting fresh capital in a pattern associated with bull markets, according to Cryptoquant CEO Ki Young Ju, as U.S. spot bitcoin ETFs continue to see significant inflows.
On October 21, Cryptoquant founder and CEO Ki Young Ju presented a realized-capitalization chart showing fresh capital flowing into Bitcoin. This pattern, marked by rising realized capitalization in green on his chart, has historically preceded major bull market rallies, including the 2017 rally and the 2020-2021 expansion.
Fresh capital is flowing into bitcoin. This only happens in bull markets.
ETF Inflows Continue
The bull market signal comes as U.S. spot bitcoin ETFs attracted approximately $524.8 million on October 21, extending their inflow streak to three consecutive sessions. Over this period, total ETF inflows reached approximately $1.07 billion, with Blackrock's IBIT leading the day's additions at $235 million, followed by Fidelity's FBTC with $212.7 million.
Bitcoin was trading near $81,000 on October 22 after retreating from an intraday high near $84,739 the previous day. Approximately $35.5 billion in bitcoin changed hands over the preceding 24 hours, indicating continued market activity despite the price fluctuation.
Realized Capitalization Explained
Realized capitalization estimates Bitcoin's aggregate cost basis by valuing each coin at the price when it last moved on the blockchain. This differs from market capitalization, which values every coin at the current market price. Rising realized cap is commonly interpreted as fresh investment entering the market, though transfers between a holder's own wallets can also affect the measure.
Cryptoquant's previous analysis using profitability-based indicators suggested Bitcoin's cycle peak could still lie ahead, suggesting the current bull market signal may indicate further potential upside for the cryptocurrency.
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