CryptoQuant CEO Ki Young Ju emphasized that the on-chain capital inflow total for Bitcoin over the last 1.5 years has exceeded that of BTC between 2009 and 2024 by a significant amount. What's driving the growth?
Summary
Bitcoin on-chain inflows between 2024 and 2025 has surpassed inflows between 2009 and 2024 by almost $200 billion.
The surge in inflows may be due to the capital coming in from institutional traders who have begun to build up positions in BTC.
According to a recent article, the analyst posted a comparison chart that highlights just how large realized capital has become with regard to Bitcoin. Based on the chart, BTC on-chain inflows have increased exponentially over the last 1.5 years, with a record-breaking $625 billion in realized funds.
It has even been able to exceed the amount of money on-chain derived from the last 15 years, all the way from 2009 up to 2024.
According to figures provided by CryptoQuant's Ki Young Ju, BTC Bitcoin
Bitcoin capital inflows from 2009 to 2024 only attracted a maximum of $435 billion over the period of 15 years. In contrast, it took less than two years for the current market to exceed that figure by almost $200 billion.
What is driving Bitcoin's high inflows?
One of the primary movers behind this increase in capital flowing on-chain is driven by the rise in institutional investors that are now engaged with Bitcoin; whether that is through spot Bitcoin ETFs, corporate treasury investment, sovereign or institutional investors.
Based on Bitcoin Treasuries data, around 3.71 million BTC are being held in treasuries with 325 entities holding Bitcoin. This is dominated by listed companies that hold 190 entities on the sheet. Michael Saylor's Strategy is still the biggest corporate holder of BTC with 638,460 BTC so far.
Simultaneously, macro tailwind from softer inflation and impending Fed cuts has only accelerated this capital rotation, with long-term investors buying up and illiquid supply at all-time highs. It implies that most anticipate the shock from Fed interest rate reductions as they shift funds on-chain by employing BTC as an investment vehicle.
Other than that, the increase in the price of BTC can attract more capital as investors feel a sense of fear of missing out. Currently, BTC has registered a 93.3% rise over the last year, which is indicative of the increase in on-chain capital. It has achieved successive all-time highs during its recent rallies this year.
From the technical perspective, BTC is getting close to historically overbought levels, with the monthly Relative Strength Index at around 70. While this indicates good bullish momentum, it also increases the potential for pullbacks or consolidation as traders lock in profit. Yet the bigger picture trend is still intact, and in light of the magnitude of new inflows, any retracement can be viewed as healthy and not as a sign of cycle completion.
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