On-chain data shows: Bitcoin sees capital inflows at a record-breaking pace

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Bitcoin has exploded higher and higher in the past few weeks.

In the last five weeks alone, the coin has risen by around 50%

According to Willy Woo, the capital is pouring into the Bitcoin Era software almost at record speed.

In particular, Woo points out the realized price metric, which depicts the estimated cost base of the average Bitcoin investor.

Bitcoin has exploded higher in the past few weeks. In the past five weeks alone, the leading cryptocurrency has gained 50% against the US dollar, essentially outperforming all other assets.

Bitcoin is currently trading for $ 16,200 (buy Bitcoin now? Click here for instructions!) – well above the September lows of $ 9,800, but slightly below the local highs of $ 16,500.

According to Willy Woo, the capital is pouring into the Bitcoin market at almost record speed. The prominent on-chain analyst comments that, according to his data, there is clearly an inflow of capital into the Bitcoin market that is driving prices up.

He points to the realized price metric, which tracks the estimated average cost base that Bitcoin investors have paid. Referring to the chart below, he writes:

“The realized price estimates the average price that the market paid for BTC. It is now at the steepest rise in this cycle, meaning that the inflow of capital into #Bitcoin has reached its highest rate since the last bull market. (Higher than last year’s $ 4k- $ 14k move; current move is more organic). For the sake of this comment, I’ll define „organic“. Organic price movements occur when BTC price is closely related to investors‘ capital that enters and exits the market. If it is an inorganic BTC price, it will be dominated by short-term derivatives traders. “

Far from the only good sign

The growing strength in the realized Bitcoin price isn’t the only good sign the analyst has seen recently. He also notes that the ongoing rally appears to have been catalyzed by large investors – suggesting that this rally is being influenced by institutional money:

“Who bought this rally? It’s smart money … high net worth individuals. You can see the average transaction value between investors making a big leap up. The OTC desks see that too. Bitcoin is still in the stealth phase of its bull run. “

Notably, Woo recently stated that Bitcoin’s recent price action could be viewed as bearish from a technical perspective, suggesting bearish RSI divergence and other unfortunate signs.

However, Woo has limited this point and emphasized that what really counts is the on-chain functionalities – and they remain bullish for the cryptocurrency.