According to CryptoQuant Analyst Darkfost, as of the week of 30 August, the market value of Bitcoin had increased by more than $4.6 billion. This change has been reflected in BTC since early August, when around $63,000 rebounded and at one point broke down by $81,000, showing that the costs of chain activity and warehousing are being moved up.

$4.6 billion against cost escalation

The realized market value is calculated at the price at the time of the most recent transfer of each bitcoin, unlike the traditional market value at the latest market value. As a rule, the transfer of the currency between higher price zones pushes up this indicator and is often seen as one of the signs of re-entry.

However, Darkfost believes that this one-week change is not sufficient to confirm that liquidity has continued to recover. According to the data, the average increase in the market value achieved by Bitcoin is currently only 0.4 per cent per day, and the overall trend remains weak.

Not all from new funding

It was noted that the realized increase in market value did not mean that the equivalent new funds went directly to the market. This indicator may also be influenced by the change of hands of stock holders, especially investors whose sales have been cut off during the downturn, which will create new UTXOs and re-record prices on the chain at lower cost.

This means that the $4.6 billion increase cannot simply be understood as all new off-site buyers, but it still reflects the upturn in market trade and the emergence of new holding-cost zones.

Galaxy Research had previously mentioned that, during the week ending 23 August, the dollar increase in bitcoin had reached $14,775 per week and 23.5 per cent per week. This rebound, in addition to spot demand, was also driven by empty flats and dynamic trade.

ETF funding continues to support the rebound.

The United States spot bitcoin ETF recorded a net inflow of seven consecutive trading days, before 25 August, cumulatively around $2.57 billion, providing quantifiable demand support for the spot market.

  • Net inflows for 7 consecutive days prior to 25 August
  • Cumulative net inflow is about $2.57 billion
  • IBIT single-day inflow $284.4 million

In addition to the financial flow factor, the weakening of the United States dollar and the related concerns of the United States fiscal policy have increased market attention to scarce assets. Bitcoin went up to $81,200 on August 25th, hit a new high since mid-May, and then went up in the back. By 30 August, BTC had reported an increase of US$ 78,024, or 0.6 per cent, in 24 hours.

Follow-up attention.

Darkfost argues that the current trend in realized market value is similar to the later stages of the previous bear market, but it cannot be assumed that the market has entered a new upward cycle on the basis of historical patterns alone.

CryptoQuant CEO Ki Young Ju had previously stated that the cumulative increase in the market value of Bitcoin over the past two years had been $46.7 billion, but that the price increase had not been compounded. This means that, in the future, markets may need a larger and sustained inflow if they are to push for stronger increases.

Next, the market will continue to observe three signals: whether the market value achieved will increase for several weeks in a row, whether the average rate of increase will rise at 30 days, and whether the current US ETF financial flows will continue. If these conditions do not continue to improve, Bitcoin may still face repetitions in the vicinity of $81,000.