Bitcoin market shows low new capital inflow despite price gains

A report from Glassnode indicates that recent Bitcoin price increases are not being driven by significant new capital. In the 30-day period ending October 5, new capital inflows reached $4.9 billion, which accounts for less than 40% of the asset's price advancement. The remaining growth was driven by realized capital—money moved by existing market participants—totaling $12.8 billion.

Data shows that during the weekend Bitcoin closed above $85,000 for the first time since January, approximately 86% of coins sent to exchanges belonged to short-term holders (positions held for less than 155 days) taking profits. This represents the highest single-day percentage of short-term profit-taking in a year, significantly exceeding the typical average of under 40%.

Additionally, the report notes that Bitcoin's recent rise has been sustained by low trading volume. Spot trading volume, including exchanges and ETFs, has averaged $6.8 billion per day, a figure lower than what has been observed on nine out of ten days since January 2024. While the options market shows growing optimism, analysts warn that high leverage in large-cap cryptocurrencies could lead to forced liquidations if prices continue to decline.