The total amount of capital inflows into Bitcoin in the 30 days ending January 25 is as high as the total Bitcoin market capitalization in September 2017 and early 2019, according to new data from Glassnode.
Glassnode co-founder and CTO Rafael Schultze-Kraft tweeted that estimated cash inflows in Bitcoin (BTC) under the realized cap hit $ 70 billion in the month under review, which is the total market cap value of BTC for September four years ago in early 2019.
In 2017, Bitcoin prices soared in just three months, peaking at nearly $ 20,000 by December – an all-time high – in a rally largely led by retail investors fearing the unprecedented rise in the price of BTC to miss.
The Glassnode data now reflects the surge in institutional interest in Bitcoin. In the past few months, institutions have pumped billions of dollars into the top cryptocurrency, either as reserve assets or as a hedge against monetary inflation.
The asset’s uptrend in late 2020, when it hit a record high of around $ 42,000, was largely supported by engagement from companies and institutions – what is viewed by analysts as BTC staying power. At that point, the total market value of the cryptocurrency had passed the psychological mark of $ 1 trillion.
Amid the euphoria, the price of Bitcoin soared from over $ 40,000 to under $ 30,000 in just 24 hours, leading to random screams of the bubble bursting. Since then, BTC has struggled to regain the $ 40,000 handle, with trades hovering between $ 31,000 and $ 37,000 in the past 14 days.
Meanwhile, Etoro senior analyst Simon Peters says last week’s crash in Bitcoin prices wasn’t the bursting of the bubble. He says demand from large corporate investors will keep Bitcoin from falling any further.
Peters predicts that BTC will hit $ 70,000 by the end of the year as “the fundamental backdrop for Bitcoin remains positive”.
“Despite the decline, demand from large institutional investors remains impressive,” Peters said in comments shared with news.Bitcoin.com.
“Demand is not slowing, and I believe many investors will see a significant decline not as a bubble burst but as an opportunity that presents itself. Investors of all sizes will find a price on the order of $ 28,000 a great opportunity to add to their positions, ”he said.
What do you think of the capital inflows into Bitcoin? Let us know in the comments below.
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