bitcoin has set a new all-time high (ATH) beyond the $98,000 level today as on-chain data shows cryptocurrency inflows have skyrocketed.
crypto Market Capital Inflows Now Amount to Nearly $63 Billion Per Month
According to the latest weekly report from the on-chain analysis firm glass nodeThe cryptocurrency sector has been seeing the injection of a significant amount of capital recently.
To calculate net flows in the sector as a whole, Glassnode has used two metrics: bitcoin + ethereum Net Position Change and Stablecoin Net Position Change. The first of these tracks the net changes that occur in the combined realized limit of btc and eth. “Realized Cap” is an on-chain capitalization model that considers the last price at which a token was transacted on the blockchain as its “real” value.
Considering that the previous transaction of any coin was probably the last point at which it changed hands, the price at that time would denote its current cost basis. As such, the realized cap is essentially a sum of the cost basis of all tokens in the circulating supply.
Therefore, one way to interpret the model is as a measure of the amount of capital that bitcoin and ethereum investors as a whole have invested in the cryptocurrencies. When the realized limit changes, capital enters or leaves these currencies. Therefore, the btc + eth net position change, which tracks these changes, reflects the net USD flows occurring for the two major assets.
Net stablecoin position change, the second relevant metric here, simply measures the net capital flows of major stablecoins by tracking the changes taking place in their combined supply.
The reason the realized limit is not required for these assets is that their value remains fixed around the $1 mark; This means that its realized limit is always equal to the market limit, which in turn is equivalent to the circulating supply with the unit changed.
Now, here is the chart published by the analytics firm in the report showing the trend in the combined 30-day value of btc + eth and Stablecoin net position change over the past few years:
<img data-recalc-dims="1" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/11/Bitcoin-Clears-98000-as-Cryptocurrency-Inflows-Surpass-62-Billion.png" alt="bitcoin, ethereum and Stablecoin Net Position Change” width=”2000″ height=”1152″/>
The value of the metric appears to have seen rapid growth in recent weeks | Source: Glassnode's The Week Onchain - Week 47, 2024
You can see from the chart that this combined indicator has recently seen a sharp rise into positive territory, implying large net capital inflows into assets.
“Over the past 30 days, aggregate inflows have reached a whopping $62.9 billion, with the bitcoin and ethereum networks absorbing $53.3 billion, while stablecoin supplies have expanded by $9.6 billion,” reads the report.
While these inflows do not represent an exact measure for the cryptocurrency sector as a whole, they do act as a good approximation, as most of the capital flowing into the market does so through bitcoin, ethereum, and stablecoins. . Only after a rotation of these important assets do altcoins get their fuel.
bitcoin price
bitcoin had risen close to $98,400 earlier in the day, but its price has since seen a pullback and is now down to $97,100.
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Looks like the price of the coin has been marching up recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
