2024

Pi [IOU]

Bitcoin

Billion

<p>As BTC price kept rising, its capital inflows saw unparalleled levels, with $80 Billion per month entering the Bitcoin market.</p> 
<p>Meanwhile, the rising realized cap, more transactions from long-term holders (LTHs), and wider Pi Cycle Top gap illustrated the space’s potential to continue momentum.</p> 
<h2 class="wp-block-heading" id="h-bitcoin-sees-unprecedented-capital-growth-with-80-billion-monthly-surge"><strong>Bitcoin Sees Unprecedented Capital Growth with $80 Billion Monthly Surge</strong></h2> 
<p><a href="https://www.thecoinrepublic.com/2024/12/12/metaplanet-wants-10000-bitcoin-by-2025-says-exec/">Bitcoin’s</a> market capital kept on sprucing up in a staggering shape, getting almost $80 billion in new capital consistently.</p> 
<p>Close to 50 % of the capital introduced to the market over the past 15 years went in just this year, implying a historic turn of the Bitcoin establishment’s wheel.</p> 
<p>Ki Young Ju said understanding Bitcoin’s explosive growth was something that should be considered when looking at its role in global finance.</p> 
<p>If you don’t ‘get’ this, you may not fully ‘get’ the chance it represents, said Ju. The message plays to the changing importance of Bitcoin in the world of money.</p> 
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   <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> is attracting $80 billion every month.<br><br>Nearly half of the capital that has entered the Bitcoin market over the past 15 years was added this year. <br><br>If you don’t understand what this means, you still don’t understand Bitcoin. <a href="https://t.co/7qvk8tUzlu">pic.twitter.com/7qvk8tUzlu</a></p>— Ki Young Ju (@ki_young_ju) <a href="https://twitter.com/ki_young_ju/status/1867049525489328351?ref_src=twsrc%5Etfw">December 12, 2024</a>
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<p>The realized cap experienced a dramatic spike, which was in line with the broader mainstream adoption and growing investor confidence.</p> 
<p>Market participants hold the view that Bitcoin’s long-term viability is unshaken, as Bitcoin solidified itself as a store of value.</p> 
<h2 class="wp-block-heading" id="h-rising-btc-price-drives-long-term-holders-to-transact-and-increase-production-costs"><strong>Rising BTC Price Drives Long-Term Holders to Transact and Increase Production Costs</strong></h2> 
<p>Increasing market activity was caused by rising <a href="https://www.thecoinrepublic.com/2024/12/12/michael-saylor-stands-by-holding-strategy-as-bitcoin-price-breaks-100k-again/">Bitcoin</a> price as long-term holders (LTH) transact.</p> 
<p>When Bitcoin’s value increased, these holders were incentivized to redistribute the coin, shifting Bitcoin’s realized capitalization.</p> 
<p>The crossover between this Bitcoin network transaction activity and the market price highlighted how capital movements follow the market price of Bitcoin.</p> 
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  <img loading="lazy" decoding="async" width="1024" height="576" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-225-1024x576.png" alt="" class="wp-image-876555" style="width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-225-1024x576.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-225-300x169.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-225-768x432.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-225-1536x864.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-225-150x84.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-225-696x392.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-225-1068x601.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-225.png 1800w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
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   <em>BTC Estimated Production Cost | Source: Glassnode</em>
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<p>As the BTC price goes up, so does production, assuming the chain remains decentralized, which meant that if the value of Bitcoin rose, so did production and maintenance costs.</p> 
<p>The more valuable Bitcoin became, the more costly it is to mine, thus driving up maintenance costs for the network.</p> 
<p>The dynamic was expected to remain, which could further apply pressure to the Bitcoin market.</p> 
<p>As the market evolves in this way, long-term holder transactions and increases in production costs are rewriting Bitcoin’s economic landscape.</p> 
<h2 class="wp-block-heading" id="h-bitcoin-s-pi-cycle-top-indicator-suggests-continued-growth-potential"><strong>Bitcoin’s Pi Cycle Top Indicator Suggests Continued Growth Potential</strong></h2> 
<p>Again, the crypto space seemed to be popular because Bitcoin’s Pi Cycle Top indicator, showed a record gap between its moving averages, leaving more room to grow.</p> 
<p>According to CryptoCon’s analysis of the Pi Cycle Top’s historical performance, Bitcoin’s growth isn’t topped out.</p> 
<p>With the gap firmly in Bitcoin’s favor, the price could have further to rise, which remains bullish. This takes a fairly positive short term future for Bitcoin, with plenty of room to grow.</p> 
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   <p lang="en" dir="ltr">The gap between the <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> Pi Cycle Top moving averages is now the widest it's ever been post-ATHs at 74%.<br><br>Why does this matter?<br><br>The further the moving averages are apart, the higher price will need to go for them to cross.<br><br>Other gaps were, at most, 46% apart, giving us a… <a href="https://t.co/DYpQQyAgyI">pic.twitter.com/DYpQQyAgyI</a></p>— CryptoCon (@CryptoCon_) <a href="https://twitter.com/CryptoCon_/status/1866949795924832640?ref_src=twsrc%5Etfw">December 11, 2024</a>
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<p>With the 350 DMA (2) on the stronger uptrend, where the 111 DMA was at 1.1K, which was 74% higher than the 350 DMA (2), the price had much room upside.</p> 
<p>A big gap like this hadn’t been observed since Bitcoin’s ATHs, suggesting that Bitcoin is by no means finished with the bull run as yet.</p> 
<p>BTC post-ATH price trajectory was became clearer as this gap between the two moving averages widens.</p> 
<p>Other cycles had historically showed smaller gaps, but one was as high as 46%. Given the gap, Bitcoin’s market will likely keep rising up for a long time until the next price top.</p> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/12/13/btc-price-continues-to-rise-monthly-capital-inflow-hits-80-billion/">BTC Price Continues To Rise, Monthly Capital Inflow Hits $80 Billion</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

BTC Price Continues To Rise, Monthly Capital Inflow Hits $80 Billion

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