Fresh capital continues flooding into Bitcoin, with daily inflows matching levels last seen during the 2021 bull market peak. On-chain data reveals sustained institutional and retail demand even as BTC consolidates below its recent all-time high of $112,000.
According to prominent analyst Axel Adler, Bitcoin is currently attracting an average of $1.8 billion in new capital daily – equivalent to inflow rates observed when BTC traded at $64,000 in November 2021. This surge in capital inflows comes amid technical indicators suggesting a potential correction, highlighting the strong underlying demand supporting current price levels.
Record Capital Inflows Signal Growing Institutional Confidence
The latest CryptoQuant data shows peak inflows during this cycle reached $4.5 billion when BTC hit $92,000, and $3.6 billion at the $73,000 level. This persistent capital rotation into Bitcoin suggests growing institutional confidence in cryptocurrency as a legitimate asset class.
Technical Analysis: BTC Consolidates Above Key Support
Bitcoin is currently trading around $105,000, marking a modest 5% retracement from recent highs. The price remains well-supported above the critical $103,600-$105,000 zone, with the 34-week EMA providing additional support at $89,020.
FAQ: Bitcoin Capital Inflows
What do increasing capital inflows mean for Bitcoin’s price?
Sustained capital inflows typically indicate strong buyer demand and often precede price appreciation. Current inflow levels matching the 2021 bull market suggest potential for continued upward momentum.
How does this compare to previous bull markets?
The current daily inflow average of $1.8 billion matches levels seen during Bitcoin’s previous all-time high in November 2021, indicating similar levels of investor interest and market confidence.
What could trigger the next move higher?
A weekly close above $109,300 could confirm continuation toward the $120,000 level, particularly if capital inflows maintain their current pace or accelerate further.
The combination of strong capital inflows and stable technical structure suggests Bitcoin’s bull market remains intact despite recent consolidation. Traders should monitor the $109,300 level for potential breakout confirmation while maintaining awareness of key support at $103,600.
