Bitcoin (BTC) and Ethereum (ETH) have welcomed massive capital inflows, a move that can greatly impact the prices of both coins.
According to insights shared by top market analyst, Ali Martinez, a total of $19.7 billion flowed into Bitcoin and Ethereum today. He posited that the last time this enormous capital entered the market was in December 2020, a period when the price of Bitcoin grew astronomically from $18,000 to $65,000 respectively.
Bitcoin and Ethereum are bullish at the moment. While Bitcoin is priced at $42,455.71, up 2.64% in 24 hours with a market cap of $830,279,319,394, Ethereum has grown 3.83% to $2,268.96 atop a market valuation of $272,882,507,263. With volatility high for both coins, trading volumes are considerably elevated.
Dynamic Shift in Capital Inflows
The chart shared by the analyst showcased the interesting twist in the coins’ flow balance. According to the chart, as of December 11, 2020, when the price of BTC was $18,079.31, the coin’s positive 30-day Capital inflows came in at $22,244,699,464.21, while the Negative 30-day Capital Outflows stayed unchanged at $0.
The data at the time also showed that the BTC and Ethereum Net Position Change was $19,598,379,734.19, while the stablecoin Net Position Change was pegged at $2,646,319,730.02.
Shortly after the market recorded these figures, the price of Bitcoin rallied to the all-time high of $69,000, represented by the dark lines on the chart displayed by the analyst.
At the moment, similar statistics are visible with the Positive 30-day Capital Inflow coming in slightly higher at $22,343,091,198.64. Should history choose to repeat itself and BTC decide to trail a similar path as the 2020 cycle, achieving many of the conservative price targets above $100,000 by some market experts may be feasible.
Bitcoin ETF Catalyst
This data insight comes at a time when the broader digital currency ecosystem is getting set for the emergence of a spot Bitcoin Exchange Traded Fund (ETF) product.
While the United States Securities and Exchange Commission (SEC) has not given a green light to the numerous applications on its desk, the hype is high considering the positive communication between the regulator and some of the applicants.
Should the SEC approve the product, it might usher in billions in capital into the market, a move that will also impact price surge.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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