Bitcoin (BTC) on-chain capital inflows show strong demand for the world's largest cryptocurrency, despite negative market sentiment since the $19 billion cryptocurrency crash, with both investors and miners ramping up their activities.
In the past week, Bitcoin has achieved a market capitalization increase of over $8 billion, surpassing $1.1 trillion, with BTC's price rising above $110,000, indicating strong on-chain capital inflows.
Bitcoin's market capitalization measures the dollar value of all tokens calculated by their last moving price, revealing the total investment held by Bitcoin holders.
According to Ki Young Ju, founder and CEO of the crypto analytics platform CryptoQuant, the new capital inflows are primarily attributed to Bitcoin treasury companies and exchange-traded funds (ETFs).
However, Ju wrote in a post on X on Sunday that the price recovery of Bitcoin will remain limited until Bitcoin ETFs and Michael Saylor's Strategy company restart large-scale acquisitions, adding:
Meanwhile, Bitcoin miners are expanding operations, leading to an increase in hash rate, which Ju explained is a "clear long-term bullish signal" for the continued growth of "Bitcoin as a capital vessel."
Several large Bitcoin miners have recently expanded their mining equipment, including American Bitcoin, which is associated with the Trump family. According to Cointelegraph's report in August, the company purchased 17,280 application-specific integrated circuits (ASICs) worth approximately $314 million.
Despite the $8 billion in new capital inflows, investor sentiment in the crypto market has failed to recover from the "fear" zone since the record $19 billion market crash at the beginning of October.
Even though the White House released a comprehensive statement on Saturday outlining the trade agreement reached between President Trump and Chinese President Xi Jinping, investor sentiment remains low.
However, analysts at the Bitfinex exchange told Cointelegraph that the recovery of ETF capital inflows and the potential announcement of monetary easing by the Federal Reserve could drive Bitcoin's price to $140,000 in November, adding:
"Catalysts include the Federal Reserve's easing policy with two rate cuts in the fourth quarter, a doubling of ETF inflows, and seasonal strength in the fourth quarter, while risks related to tariffs and geopolitics remain," the analysts added.
Related: Bitcoin (BTC) may welcome its first "Red October" in seven years: What will November bring?
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