Bitcoin's on-chain inflows are signaling robust demand for the world's largest cryptocurrency, with both investors and miners ramping up their activity despite the negative market sentiment since the $19 billion crypto crash.
Over the past week, Bitcoin's (BTC) realized cap rose by over $8 billion to surpass $1.1 trillion, as BTC’s realized price rose above $110,000, indicating strong onchain inflows.
Bitcoin’s realized cap measures the dollar value of all coins at their last moved price, revealing the total investment held by Bitcoin holders.
The new inflows are mainly attributed to Bitcoin treasury firms and exchange-traded funds (ETFs), according to Ki Young Ju, the founder and CEO of crypto analytics platform CryptoQuant.
However, Bitcoin's price recovery will remain limited until Bitcoin ETFs and Michael Saylor's Strategy restart their large-scale acquisitions, wrote Ju in a Sunday X post, adding:
“Demand is now driven mostly by ETFs and MicroStrategy, both slowing buys recently. If these two channels recover, market momentum likely returns.”
Meanwhile, Bitcoin miners are expanding their operations, leading to a rising hash rate, which is a "clear long-term bullish signal" for the continued growth of the “Bitcoin money vessel,” explained Ju.
Multiple large Bitcoin miners have recently expanded their mining fleets, including the Trump family-linked American Bitcoin, which purchased 17,280 application-specific integrated circuits (ASICs) for about $314 million, Cointelegraph reported in August.
Bitcoin Price Prediction: $140k in November Hinges on ETF Flows, Analysts Say
Despite the $8 billion of new inflows, crypto investor sentiment was unable to recover from “Fear” territory since the record $19 billion market crash at the beginning of October.
Investor sentiment remained poor despite the White House releasing a comprehensive statement outlining the trade agreement reached between President Trump and Chinese President Xi Jinping on Saturday.
However, a resurgence in ETF inflows and potential monetary easing announcement from the Federal Reserve may propel Bitcoin’s price to $140,000 in November, analysts from Bitfinex exchange told Cointelegraph, adding:
“Our base case sees Bitcoin rising towards $140,000, with total ETF inflows between $10 and $15 billion not being surprising.”
“Catalysts include Fed easing with two cuts in Q4, ETF inflows doubling, and seasonal Q4 strength, while risks remain around tariffs and geopolitics,” added the analysts.