Current Bitcoin Bull Cycle Sees Lower Short-Term Money Inflow Than Previous Highs

In the ongoing bull cycle, short-term money flows into the market are significantly lower than during the previous highs, which shows that this time the investors act differently or the market works with other dynamics. In the highest point of a bull cycle, buying activity from individuals is usually the highest. Cryptocurrencies grow and show a good upward trend with strong momentum, which attracts serious inflows of money. However, now the short-term money flows are significantly lower in comparison to the historic highs.

Difference in money inflow between past and current bull cycles

“The current short-term money inflow situation is significantly smaller than the peak of the past bull cycle.” – By @DanCoinInvestor

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— CryptoQuant.com (@cryptoquant_com) May 10, 2024

Major Investors Profit from Bitcoin at $74,000, But Current Cycle Differs

While several major investors took a massive amount of profit back when Bitcoin had peaked at $74,000 in the middle of March, the current situation is quite different from what occurred during the previous bull cycles. The differences in opportunities and drivers, like the potential approval of a Bitcoin spot ETF and high levels of institutional engagement, contribute to the more optimistic narrative.

As a result, there is a relatively low probability that the said cycle’s zenith has already been reached, an estimate that concerns around 20% of cases. General inflows of money confirm the forward-looking nature of the market and the changes.

Institutional and Regulatory Players Shift Crypto Market Landscape

Past cycles experienced a wave of support from isolated individuals and investors. This time, there are several groups that make up the participant pool, including institutional player and regulators.

As the market rises and falls through phases of euphoria and correction, knowing the dynamics of money inflow can be a critical benefit to investors and interested parties. While historical experiences have been instructive in this regard, the developing this industry’s dynamics demand an understanding of pattern analysis and foretelling that give confidence to the possibility for constant advancements in the future.

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