Strong inflows – has the bull market begun?

BitvavoDec 22, 2025

While the bull market may seem to be stalling, an unprecedented amount of new capital is flowing into the crypto market. In this edition of Market News, we explore how this is possible, what it means for 2026, and how Bitcoin is preparing for a threat that still appears years away but is already raising serious questions.

Market update

"We haven't had a bull market at all yet," is a common refrain. And if you look at the prices, especially those of altcoins, that's an understandable point. Even bitcoin, at its peak of €107,500, was only 80% above its 2021 high. That is modest compared to previous bull markets. The current sequence of cycle highs now stands at €850 in 2013, €16,500 in 2017, €59,600 in 2021, and €107,500 in 2025.

But if we look at the inflow of new capital, a very different picture emerges. Since the launch of the ETFs, on-chain data shows that $690 billion of new capital has been injected into bitcoin. The majority of this has occurred in the past year: $470 billion since Trump's election.

In 2025 alone, investors have injected more new capital into bitcoin than during the entire 2019-2021 bull market. New investors injected an average of $1.3 billion in new money per day, while existing investors were realising $1.3 billion in profit per day.

We're witnessing a massive rotation toward a group of investors who don't see $100,000 as a distant target, but rather as a starting point. So far, they seem unfazed by a 35% correction. For example, there's been virtually no outflow from US spot ETFs. This could be a good starting point for a new period of growth in 2026.

Featured

The quantum threat to Bitcoin: panic or preparation?

This past week, an old but sensitive topic resurfaced in the Bitcoin world: quantum computing. Not as science fiction, but as a serious issue. What will happen to Bitcoin if computers in the future are able to break cryptography that's still considered secure today?

To get a clear picture, it's important to first consider this: Bitcoin is secured using cryptographic techniques based on mathematical problems that are practically unsolvable for classical computers. Quantum computers operate differently. In theory, they could circumvent certain calculations, potentially making existing security vulnerable over time. Whether and when that point will be reached is unknown. But the issue is very real.

The discussion this week was therefore not so much about technical details, but about something more fundamental: how an ownerless system deals with a threat that is not yet concrete, but also no longer entirely imaginary.

On the one hand, there are voices warning against underestimating the value of the system. Their core argument is that technological progress rarely proceeds smoothly and linearly. If quantum computing suddenly makes major strides forward, there would be little time to react. Moreover, a significant portion of all bitcoins are locked in old, vulnerable addresses. A change to the Bitcoin protocol to structurally address this problem would be far-reaching and would require years of preparation. According to this group, doing nothing is not a neutral choice, but a gamble.

On the other hand, developers are warning against panic. Bitcoin is built on caution. Cryptographic choices are not easily reversed. Moving too early to so-called post-quantum security could mean trading today’s certainty for unknown risks that may only become apparent much later. In their view, hasty action is more dangerous than waiting.

Fortunately, between these two extremes, there is no paralyzing standoff, but rather something resembling a mature process. There is broad recognition that doing nothing isn't an option in the long run, but also that hasty decisions can backfire. As a result, the focus is shifting to practical steps that already make sense today. These include limiting address reuse, gradually reducing vulnerable addresses, and preparing contingency plans that can be activated if the situation changes.

Anyone who looks only at the tone of online discussions will mainly see fierce disagreements. Those who look more closely see something else: panic, caution, research, and strategy, all at once. Exactly what you'd expect from a decentralized system that lacks a central decision-maker and instead operates on dialogue and consensus.

The quantum threat does not weaken Bitcoin. On the contrary. The very fact that this debate is already underway demonstrates how the network is preparing for an uncertain future. This is not a sign of weakness, but of maturity.

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In other news

Hong Kong channels insurance capital into crypto and infrastructure. The regulator wants to allow insurers to invest in crypto and large-scale infrastructure projects under new capital rules. According to Bloomberg, crypto will be treated harshly, with a risk weighting of 100%. Stablecoins will be assessed based on their underlying currency. The proposal is still subject to change; a public consultation round will begin in the first quarter of 2026.
Solana and XRP ETFs outperform Bitcoin and Ether funds. In the week of December 15-19, $644 million flowed out of Ethereum ETFs. None of the nine funds saw any inflows. Bitcoin also saw net outflows of $497 million. Notably, investors opted for smaller alternatives: XRP ETFs attracted $82 million and Solana funds saw inflows of $66 million. This may indicate that investors are selectively seeking new growth and momentum within crypto.
Grayscale sees tokenization as the next major wave. According to the asset manager, tokenized stocks and bonds are still very small, representing only about 0.01% of global markets. By 2030 however, a thousandfold increase is within reach. The prerequisites are mature blockchain infrastructure and clearer regulation. Grayscale expects Ethereum, BNB, Solana, and Avalanche to benefit most, with Chainlink playing a crucial role in reliable data and settlement.
CryptoPunks now officially part of MoMA’s collection. The Museum of Modern Art in New York has added eight CryptoPunks to its permanent collection. The works were donated by a group of art collectors, with support from Larva Labs itself. This marks a definitive transition of one of the first NFT projects from internet culture into the institutional art world. Notably, NFTs, long in the background of the crypto space, are now making the leap into museum-worthy heritage.

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Satoshi Radio: The latest episode of Satoshi Radio looks back at the crypto year 2025, based on predictions made a year ago. What came true, what didn't, and which trends flew under the radar? Major themes such as ETFs, price forecasts, bitcoin adoption, and the role of players like Strategy are reviewed. This episode puts the year in perspective and highlights the stories that truly shaped the market.

This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.