CryptoQuant: BTC needs over $1T in new capital for next rally

Bitcoin's capital efficiency has declined, requiring over $1 trillion in new funds to fuel its next rally, according to an analysis by CryptoQuant. Citing a recent report from the analytics firm, CoinDesk noted that BTC's capital efficiency has dropped sharply over past bull cycles, demanding significantly more capital for rallies. In 2011, a $2.8 billion net inflow resulted in a 55,000% price increase, whereas in 2015, a $69 billion inflow led to a 10,000% rise. In the current cycle, which began in 2022, a $697 billion inflow has produced a 689% gain. Ki Young Ju, CEO of CryptoQuant, said that for Bitcoin to see further gains, it must establish itself as a core macro asset beyond the current retail-investor-driven ETF trading. He added that another major surge is only possible with large-scale institutional adoption capable of absorbing over $1 trillion in new capital. However, Ki noted that the environment for such a large-scale influx of institutional funds is not yet in place, pointing to recent net outflows from U.S. spot BTC ETFs and Bitcoin's bearish close to the first half of the year.