Executive Summary:
Capital flows into Bitcoin remain positive, although they have declined in magnitude since first reaching $100k. This highlights a period of declining sell-side pressure as the market approaches a near-term equilibrium.
Sell-side pressure from long-term investors has also declined, alongside volumes deposited to exchanges for sale.
Several measures of volatility are tightening up, with the market trading within a historically narrow 60-day price range, often a sign that the market is almost ready to move again.
Capital Flows Approaching Equilibrium
As the price hit the $100k level, net capital inflows into Bitcoin surged, signifying investors were locking in substantial profits. These capital inflows have since started to decline in magnitude as the market consolidates and acclimatises to the new price range.
This slowdown in profit-taking represents a net reduction in sell-side forces, thus requiring less fresh capital to maintain prices within the trading range.
The Realized Cap is currently trading at an ATH value of $832B, and is growing at a rate of $38.6B/month.
