The CEO of CryptoQuant, Ki Young Ju, believes that Bitcoin has another parabolic growth cycle ahead, but capital efficiency is declining with each cycle. While inflows of $2.7 billion in 2011 boosted prices by 55,436%, $697 billion yielded only 689% in the current cycle. Previously, $5 million of new capital doubled the price of BTC, whereas it now requires around $101 billion.

The next parabolic rally, according to the analyst, will require deeper engagement of institutional capital. Bitcoin should be a full-fledged macro asset, not just a tool for retail investors through ETFs. If an asset absorbs more than $1 trillion of realized capitalization, 10-fold growth remains feasible.

Ju also explained why realized capitalization is more important than market: it evaluates each Bitcoin at the price of its last oncheen transfer. Market capitalization can increase at the expense of speculation, whereas realized capital is increased only when actual purchases are made at higher prices. This forms a new aggregate cost base and reflects the real redistribution of coins.

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The material is prepared solely for informational purposes and does not constitute a financial advice or recommendation.