Will Bitcoin Rally Continue? This Signal Remains Green

Will Bitcoin Rally Continue? This Signal Remains Green
фото показано с : bitcoinist.com

2023-11-6 17:00

On-chain data suggests the Bitcoin rally could continue further as the sector is still observing significant positive capital netflows.

Major Asset Classes In The Cryptocurrency Sector Continue To See Inflows

As pointed out by analyst Ali in a post on X, a large amount of capital is flowing into the cryptocurrency market right now. The Glassnode indicator that the analyst has cited tracks the netflows going into the sector by measuring two things.

First, it finds out the 30-day net position change in the “realized cap” of Bitcoin and Ethereum. The realized cap here refers to a capitalization model that calculates the total valuation of an asset by assuming that the price at which each token was last moved on the chain is its true value.

Since a token’s movement could likely represent a change of hands, the price at which it was transacted was its buying price. Thus, the realized cap provides us with information about the amount of capital that the holders as a whole have used to buy the cryptocurrency.

The second thing that the market netflow indicator keeps track of is the supply change of the major USD stablecoins. Since these coins are pegged to the dollar, their supply is the same as their market cap, and since they remain relatively stable, their realized cap is also roughly the same.

The reason that these three asset classes have been chosen to track cryptocurrency market capital netflows is that a vast majority of such transitions happen through them. Historically, the altcoins have only been fed their capital after a forward rotation from these major assets.

Now, here is a chart that shows how the sector has looked in terms of capital netflows over the year 2023:

As displayed in the graph, the indicator’s value had been negative during the slump Bitcoin had observed a while ago, implying that capital was rapidly leaving the sector.

Last month, however, the metric finally turned positive and what followed was BTC’s impressive run towards the $35,000 level. The rest of the sector also walked in the lead of the original cryptocurrency, as the altcoins saw surges of their own.

In the chart, the net position change for the realized cap of Bitcoin and Ethereum, and that for the supply of the stablecoins are also separately shown. From it, it’s visible that the capital inflows this time have mostly come through BTC and ETH, as the stables have seen relatively tame growth.

So far, the inflows into the sector haven’t hit a phase of slowdown, as the indicator has only become more positive and has just set a new 2023 high of $10.97 billion.

This is naturally a positive sign for the Bitcoin rally, as such continued interest from the investors in the sector means the surge could potentially remain sufficiently fueled.

Bitcoin Price

Bitcoin has slowed down recently as its price is still continuing to consolidate around the $35,000 level. If the market inflows are anything to go by, though, the rally could possibly restart in the near future.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Rally (RALLY) на Currencies.ru

$ 0.0004604 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0.0004604 - H: $0.0004604
Капитализация $0 Rank 3603
Доступно / Всего 0 RALLY

continue sector capital bitcoin cryptocurrency rally ali

continue sector → Результатов: 107


Crypto liquidity falling as market makers pull back from hostile US market

Key Takeaways Jane Street and Jump Crypto, two prominent crypto market makers, are scaling back crypto operations The decision comes as US regulators continue an aggressive clampdown on the sector Liquidity is already thin in crypto, and these moves will only drop it further and increase volatility, writes our Head of Research, Dan Ashmore   […] The post Crypto liquidity falling as market makers pull back from hostile US market appeared first on CoinJournal.

2023-5-12 13:20


AI cryptos continue to sizzle with the market sector up over 51% in the past week

The market sector of AI crypto continues to sizzle, with the top 30 tokens all in the green over the last 30 days, a trend that has left many investors wondering: how frothy can this top possibly get?  The news comes on the heels of the widely successful launch of ChatGPT, backed to the tune […] The post AI cryptos continue to sizzle with the market sector up over 51% in the past week appeared first on CryptoSlate.

2023-2-7 22:37


Investment Platform Aperture Aiming to Be the AppStore of Defi

Defi became a $100 billion sector last year, propelled by the success of endless protocols devoted to lending, trading, savings and investment. Despite recent market choppiness, many crypto investors and commentators believe the industry will continue its astronomic growth – with one boldly predicting that DeFi could achieve a market cap of $800 billion by […]

2022-2-10 12:00


Фото:

‘Reiterated FUD’ – Chinese Government to Continue Monitoring Bitcoin Mining Sector

A recent report from the Chinese government’s financial committee has reiterated the country’s stance on bitcoin mining and that it would continue to monitor the sector closely. The report follows a recent article from Reuters published three days ago, which also reiterates China’s older warnings against the crypto industry.

2021-5-22 21:00