The likelihood of Bitcoin entering a new strong bull cycle may depend on the capital inflow that institutional investors provide to the market. Ki Young Ju, CEO of on-chain data analytics company CryptoQuant, stated that Bitcoin could experience another parabolic bull market, but with different dynamics compared to past cycles.
Ki Young Ju, posting on the social media platform X, stated that Bitcoin’s return on capital has significantly decreased over the years as it has grown. According to his example, approximately $2.7 billion in capital injected into the market in 2011 resulted in an extraordinary 55,436% increase in Bitcoin’s price. In contrast, despite a capital inflow of approximately $697 billion in the current cycle, Bitcoin’s return has remained at 689%.
According to the analyst, this situation reveals that, as Bitcoin’s market capitalization grows, a much larger amount of capital is needed compared to the past to drive its price upwards. Therefore, it is assessed that the main driving force of the next major bull market will be large-scale capital allocations by institutional investors, not individual investors.
Ki Young Ju emphasized that for Bitcoin’s long-term success, it needs to move beyond being merely an asset invested in by exchange-traded funds (ETFs). According to him, Bitcoin’s recognition as a strategic asset class within the global macroeconomic system would be one of the most important developments that could open the door to new capital flows.
Stating that this transformation is still in its early stages, the CEO of CryptoQuant expressed that Bitcoin retains its growth potential. Ki Young Ju added that if Bitcoin can attract over $1 trillion in new capital based on its realized market capitalization, there is a strong possibility of a parabolic bull run reminiscent of past periods.
*This is not investment advice.
