Those who invested in assets months ago have already guaranteed a return of 150% on their capital. Analyst Willy Woo finds the current bullish rally more organic than the previous one.

Analyst Willy Woo showed data indicating that the inflow of capital into the Bitcoin market is at its highest rate. That is an organic movement that correlates with the price of the cryptocurrency. For that reason, it can suggest that the current bullish run is sustainable in the long term.

On his Twitter account, Woo recently commented that the capital inflow that Bitcoin is receiving is at its highest rate. It even exceeds the last bullish market that occurred in 2019 when the price of the cryptocurrency went from USD 4,000 to USD 14,000.

Woo bases his conclusions on the interpretation of the realized price indicator; this is a metric that data firm CoinMetrics created to calculate the circulating supply of coins available in the market. To do this, it uses as a basis the price of Bitcoin when the funds last moved.

The realized price of Bitcoin is an approximation of what the entire market paid for its coins. The metric excludes balances that have not moved for a long time. The intention is to provide a more reliable picture of the overall network by discounting the coins out of active circulation.

According to data from analysis firm Glassnode, the realized price of Bitcoin reached its all-time high on November 15th, recording a value of USD 6,903 per unit. This would be the average price that most users paid when investing in Bitcoin during 2020.

Bitcoin’s price last reached USD 6,900 at the end of April, according to data from CoinMarketCap. In other words, users who decide to sell their assets at the moment would obtain a return of 150%, considering that the value of the cryptocurrency is around USD 17,800. To reach that profit margin, an investor had to wait a minimum of 7 months.

Bitcoin’s Long-Term Signals Are Good

The rate of return on stored capital that Bitcoin currently records is more organic than that of the 2019 bullish rally, according to Woo. He believes the indicative is optimistic as there is a tremendous inflow of capital into Bitcoin. This also means that the price rally is more sustainable in the long term.

The analyst added that Bitcoin is the world’s first risk haven since it rises during traditional boom cycles as its adoption curve demonstrates. The same is true when investors flock to the pioneering cryptocurrency seeking havens. This action is due to the technical design of digital scarcity that the pioneer cryptocurrency focuses on.

Woo believes that there are currently several reasons to be optimistic about the long-term price of the cryptocurrency. According to him, one cause is the increasing amount of Bitcoin that users are withdrawing from exchanges to store in their wallets. Another reason is the growth in the number of new users who remain active on the network.

Finally, it is relevant to mention the growing institutional involvement and the recent adoption of Bitcoin by billionaire investors, mutual fund managers like Grayscale, banking institutions, and prominent personalities.

By Willmen Blanco

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