Key Points
- Bitcoin (BTC) is poised for another significant bull run, according to CryptoQuant analysts.
- The UTXO P/L Supply Ratio indicator and massive capital inflows suggest a bullish trend for Bitcoin.
CryptoQuant analysts have expressed confidence that Bitcoin (BTC) is primed for another major bull run. Ki Young Jun, an on-chain analyst and founder of CryptoQuant, noted that Bitcoin has shown on-chain momentum, signaling a sufficient capital inflow to kickstart the next phase of the bull run.
The above conclusion was based on the critical UTXO P/L Supply Ratio indicator. This tool tracks market sentiment and investor behavior.
An increase in the UTXO P/L Supply Ratio signifies a bullish sentiment as investors hold onto their BTC in anticipation of further price appreciation. Conversely, a drop in this metric points to a bearish trend with potential price depreciation.
UTXO P/L Supply Ratio Indicator and Bitcoin’s Bull Run
The UTXO P/L Supply Ratio indicator has only spiked twice in the past decade – in mid-2017 and early 2021. Both spikes were followed by a prolonged rally that lasted over three months.
The indicator saw another spike in Q1 2024, just days before the BTC Halving event. Based on historical data, CryptoQuant analysts believe that Bitcoin is set for another parabolic bull run due to substantial capital inflows.
Continued Demand for Bitcoin from US Spot ETFs
The demand for Bitcoin from US spot BTC ETFs continues to grow. On March 12, these ETFs recorded a new high of $1 billion in net inflow, with BlackRock’s iShares Bitcoin Trust (IBIT) leading at $849M. In other words, the spot BTC ETFs recorded a 14.7K BTC net inflow on that day.
This surge in demand from spot ETFs pushed the BTC price above $73K at the time of writing, marking a more than 6% rally from the previous all-time high of $69K. This significant capital inflow and price appreciation align with the bullish narrative suggested by the UTXO P/L Supply Ratio.
While historical data is not always indicative of future outcomes, if current trends continue, a repeat of the UTXO P/L Supply Ratio spike could signal an imminent mid-bull rally for Bitcoin.
