The head of blockchain analytics platform CryptoQuant says that Bitcoin’s (BTC) current market cycle is like none other before for one key reason.
Ki Young Ju tells his 340,700 followers on the social media platform X that the level of Bitcoin investment from institutional investors is unprecedented this cycle, totaling $86 billion in the last six months alone.
CryptoQuant’s data shows an explosion in Bitcon’s Realized Cap for short-term whales, or the value of the BTC at the price they were last transacted on-chain divided by the number of bitcoins among the cohort, suggesting a massive new presence of institutional money.
“This cycle is different. Institutional funds of $86 billion entered the Bitcoin market in the past six months.”
The analyst says that the buying demand for Bitcoin appears to be outpacing the selling supply as the liquid inventory ratio indicator reaches an all-time low.
“Liquid inventory ratio reached an all-time low. Sell-side liquidity is currently much lower than historical levels relative to demand.”
According to the analytics expert, the liquid inventory ratio is calculated by dividing the total sell-side inventory by the 30-day Bitcoin balance change of accumulation addresses.
Bitcoin is trading for $68,760 at time of writing, down nearly 2% in the last 24 hours.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Featured Image: Shutterstock/WWWoronin/Panuwatccn
Read the full article here
