Bitcoin’s next parabolic run may need $1 trillion in fresh capital
This cycle, about $697 billion in new money has generated a roughly 689% gain, compared with earlier cycles where far less capital drove returns of 2,000 percent to more than 50,000 percent.
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Summary
- Bitcoin’s capital efficiency has fallen sharply over successive bull cycles, with each new rally requiring far more inflows to produce smaller percentage gains.
- This cycle, about $697 billion in new money has generated a roughly 689% gain, compared with earlier cycles where far less capital drove returns of 2,000 percent to more than 50,000 percent.
- Analysts say another parabolic run would likely require more than $1 trillion in fresh institutional capital, but recent ETF outflows and bitcoin’s larger market size underscore the risk that such flows may never materialize.
