By
Godfrey Benjamin
April 29th, 2024
On March 12, the spot ETFs hit a new record of $1 billion (over $14.7K BTC) in net inflow, with BlackRock’s iShares Bitcoin Trust (IBIT) dominating at $849M.
CryptoQuant analysts are confident that Bitcoin (BTC) is ready for the next leg of a massive bull run. According to Ki Young Jun, an on-chain analyst and founder of CryptoQuant, BTC recorded on-chain momentum, indicating enough capital inflow to initiate the next leg of the bull run.
On-chain momentum indicates enough fresh capital inflow to initiate the next #Bitcoin parabolic bull run. https://t.co/BrvWO1dbc4
— Ki Young Ju (@ki_young_ju) March 13, 2024
The above conclusion was drawn from a crucial UTXO P/L Supply Ratio indicator. For perspective, UTXO (Unspent Transaction Outputs) P/L (Profit/Loss) tracks market sentiment and investor behavior.
As such, a spike in the UTXO P/L Supply Ratio denotes a bullish sentiment as investors hold BTC as they expect further price appreciation. On the other hand, a drop in the metric will underscore a bearish inclination with potential price depreciation.
CryptoQuant analysts established that the indicator spiked only twice in the last decade. The spikes occurred in mid-2017 and early 2021. In both scenarios, the UTXO P/L Supply Ratio spikes were followed by an extended rally, which took over three months.
The indicator recorded another spike in Q1 2024, just a few days from the BTC Halving event. Based on historical data, CryptoQuant analysts believe BTC is ready for another parabolic bull run amidst massive capital inflows.
Insatiable Bitcoin (BTC) Demand from US Spot ETFs
The craze from US spot BTC ETFs isn’t slowing down. On March 12, the spot ETFs hit a new record of $1 billion in net inflow, with BlackRock’s iShares Bitcoin Trust (IBIT) dominating at $849M. Put differently, the spot BTC ETFs recorded a 14.7K BTC net inflow on Wednesday.
[1/4] Bitcoin ETF Flow – 12 March 2024
All data in. Record day with over $1 billion of net inflow. Blackrock with a record $849 million of inflow pic.twitter.com/dKFmM3Qvaa
— BitMEX Research (@BitMEXResearch) March 13, 2024
The insatiable demand from spot ETFs saw BTC price jump above $73K at the time of writing. That is an over 6% rally above the previous all-time high of $69K. As such, Bitcoin’s massive capital inflow and price appreciation corroborate the UTXO P/L Supply Ratio bullish narrative.
It is worth noting that historical data doesn’t always determine the future outcome. However, if everything pans out, the repeat of the UTXO P/L Supply Ratio spike scenario could mean that a mid-bull rally is imminent for BTC.