Bitcoin’s current price still has more than 40% of room to reach its all-time high. But the cumulative inflows into spot ETFs are only 10% short of their own historical peak.
Prices haven’t returned to the highs yet, but capital has almost caught up to the level seen during the most frenzied period.
This suggests that the persistence and strength of institutional buying are unlike any cycle before.
What’s even more worth pondering is the structural change it brings: in past bear markets, clearing was driven by retail investors cutting losses and miners capitulating, stretching the cycle out over a very long time;
now, with ETFs as a stable channel continuously drawing in liquidity, turnover has been accelerated as shares change hands, and the time spent at the bottom has been clearly shortened.
Prices haven’t returned to the highs yet, but capital has almost caught up to the level seen during the most frenzied period.
This suggests that the persistence and strength of institutional buying are unlike any cycle before.
What’s even more worth pondering is the structural change it brings: in past bear markets, clearing was driven by retail investors cutting losses and miners capitulating, stretching the cycle out over a very long time;
now, with ETFs as a stable channel continuously drawing in liquidity, turnover has been accelerated as shares change hands, and the time spent at the bottom has been clearly shortened.
