Crypto capital inflow is positive for the first time in 9 months
Money is returning to the crypto markets faster than it is leaving as capital flows turn green again for the first time in nine months.
According to blockchain analytics provider Glassnode, 30-day capital flow in crypto is back in positive territory.
Furthermore, the overall market realized net position is back in the green for the first time since April 2022.
For the past nine months or so, this metric has been in negative territory as more capital has flowed out of the crypto markets than into them.
Since the beginning of 2023, the crypto market value has increased by 36%. This has resulted in more than $300 billion re-entering the space.
Still, the markets are still 63% down from their peak levels in November 2021 when total market capitalization topped $3 trillion.
Bitcoin Whales at 3-Year Low
Another positive metric is that the number of Bitcoin whales has fallen to a three-year low. This means that the asset has become more distributed and less concentrated among just a handful of whale wallets.
Greater asset allocation is better for the entire ecosystem as it removes the specter of market manipulation by a few bag holders.
On 27 February, also Glassnode reported that the percentage of BTC supply last active has just reached a record high of 28.2%. This shows that adoption and network use have grown steadily, despite the bear market.
Crypto bullishness comes at a tough time with macroeconomic issues still looming and global regulators on the warpath.
There has been talk of a direct ban from the IMF (International Monetary Fund). Furthermore, SEC Gary Gensler has reiterated his opinion that all cryptos except BTC are securities.
If China is the example, banning something won’t stop people from wanting it or getting it. The more politicians and bankers crack down, the more lucrative crypto can become. There will always be forward-thinking nations that remain open to industry and assets.
Crypto Market Outlook
Markets are in the green during Monday morning’s Asian trading session. Total capitalization has risen 1.8% on the day to reach $1.13 trillion at press time.
However, the majority of high-cap assets have remained in range for the better part of this month.
Bitcoin (BTC) had gained 1.4% to reach $23,557 at the time of writing. Meanwhile, Ethereum (ETH) traded up 2.3% on the day to $1,640.
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