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Bitcoin dictates crypto fund flow as on-chain data suggest BTC’s worst may be…

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  • The king coin beat other cryptocurrencies per digital asset investments in the past week.
  • Despite hitting $23,000 on-chain data suggested that there could be a further BTC uptick.

Following a week full of swings and a weekend of greens, Bitcoin [BTC] dominated other assets per the crypto fund inflow, CoinShares revealed on 23 January. According to the largest digital investment group in Europe, inflows in the region were extremely bullish. On the other hand, the United States subsided in pumping liquidity into available investment products.

Read Bitcoin’s [BTC] Price Prediction 2023-2024

Notably, the inflow from last week was worth $37 million, with most of it going into Bitcoin short-investment products. While long-term Bitcoin investment products accounted for $5.7 million, short-period ones were as high as $25.5 million, with Switzerland and Germany leading the charge. 

Bitcoin digital asset investment flow data

Source: Coinshares

Despite the hesitation in the U.S., 80% of trading in the region focused on Bitcoin shorts. The reason for the interest quadrupling in the previous week is not one shielded from the public eye. With BTC hitting $23,000, it was almost impossible for investors not to look toward short-term gains. 

An exit from the hawkish conditions?

Although several analysts have opined that Bitcoin was out of the bearish cage, Bitcoin documentation specialist Cauconomy thought otherwise. As per his CryptoQuant Publication, the Puell Multiple was exiting the red area on 23 January.

The Puell Multiple is the ratio of the daily Bitcoin issuance, measured in dollars, to the 365-day moving average coins issuance. It also indicates a possible market top, mid-cycle or bearish condition.

CryptoQuant’s data, coupled with Cauconomy’s opinion, showed that the Puell Multiple was only approaching the initial stage of the bull cycle. This negated the circulating enthusiasm about the market being fully bullish. The analyst also urged caution, noting that more price action would be required to confirm the situation.

Bitcoin Puell Multiple

Source: CryptoQuant

How much are 1,10,100 BTCs worth today?

The halving call for increase

In another CryptoQuant market evaluation, analyst Oinonen_t mentioned a strong case for a further price increase. Referring to the current market behavior and distribution cycles, he created a chart (below) centered on retail demand and the Bitcoin halving.

He said: 

“Bitcoin’s history is also dominated by halving events, which are preceded by pre-halving accumulation cycles (blue). The shift from accumulation to distribution cycle can be forecasted by fees to reward on-chain data (white), which has a tendency to spike before each distribution cycle.”

The analyst further noted that a price increase usually followed the fees-to-reward ratio pre-halving in past cycles. Considering that the 2024 halving is only a year and some months away, the fees-to-reward ratio showed spiking tendencies. Hence, Bitcoin could lean towards another price increase.

Bitcoin halving and fees to reward ratio

Source: CryptoQuant


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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