Emily Walker
Bitcoin has reached a new peak, exceeding the $98,000 mark today, driven by a notable surge in cryptocurrency inflows, according to on-chain data.
Monthly Crypto Market Capital Inflows Approach $63 Billion
A recent report from on-chain analytics company Glassnode indicates substantial capital inflows into the cryptocurrency market recently.
Glassnode employs two key metrics to assess net inflows in the sector: Bitcoin and Ethereum Net Position Change along with Stablecoin Net Position Change. The first metric tracks the net movement in the combined Realized Cap of Bitcoin (BTC) and Ethereum (ETH). Realized Cap is an on-chain valuation model that uses the last transaction price to determine a token’s ‘true’ value.
This approach assumes that the price at the time of the last transaction indicates the current value for these assets, effectively aggregating the costs of all tokens in circulation.
Thus, this model serves as an indicator of the total investment from Bitcoin and Ethereum holders. Consequently, changes in the Realized Cap show capital entering or exiting these currencies. Therefore, the BTC + ETH Net Position Change reflects the USD inflows for these primary assets.
The second significant metric, Stablecoin Net Position Change, tracks the net capital movements for major stablecoins by evaluating shifts in their overall supply.
Realized Cap is less relevant for stablecoins as their value typically remains close to $1; thus, their Realized Cap matches their Market Cap, which corresponds to the circulating supply adjusted appropriately.
The report includes a chart detailing the trends in the 30-day cumulative values of BTC + ETH and Stablecoin Net Position Change over recent years:
The chart indicates a pronounced increase in positive net capital inflows into these assets.
According to the report, “In the past month, total inflows reached an impressive $62.9 billion, with Bitcoin and Ethereum networks accommodating $53.3 billion and stablecoin supplies increasing by $9.6 billion.”
While not providing a precise measurement of the entire cryptocurrency market, these inflows serve as a solid estimation, as most capital enters via Bitcoin, Ethereum, and stablecoins. Altcoins typically benefit from subsequent rotations in capital from these leading assets.
Current Bitcoin Price
Bitcoin had peaking at nearly $98,400 earlier but has retreated slightly to $97,100.