Bitcoin Needs $1 Trillion in New Capital for Next Major Surge, CryptoQuant Says

Bitcoin would need about $1 trillion in fresh capital to enter another major bull market from current levels, according to an analysis cited by CoinDesk.

CoinDesk reported on July 4 that on-chain analytics firm CryptoQuant compared new money flowing into Bitcoin across past bull cycles with the cryptocurrency’s price gains and found capital efficiency has steadily declined.

Historical data show that about $2.8 billion in new capital flowed into Bitcoin during the 2011 bull market, helping drive a roughly 55,000% gain. In 2015, about $69 billion in inflows coincided with a rise of about 10,000%, while in 2018, about $365 billion entered the market and Bitcoin climbed about 2,000%. By contrast, in the current cycle, which began in 2022, about $697 billion in new capital has flowed in, but the gain has reached only 689%.

The amount of money required to generate the same increase has also risen sharply. In 2011, Bitcoin could double with just about $5 million in fresh capital. In the current cycle, the same move would require about $101 billion, the data showed.

CryptoQuant Chief Executive Officer Ki Young Ju wrote that Bitcoin needs to move beyond ETF trading led by retail investors and establish itself as a core macroeconomic asset. He added that another parabolic bull run would require more than $1 trillion in new capital entering the market.