Key points:
- Bitcoin’s realized cap is beating records and has almost reached the $900 billion mark.
- The market is laying the foundations for a “potentially significant price breakout,” new analysis says.
- Profit-taking is not hindering the overall bull market rebound.
Bitcoin (BTC) is witnessing a historic surge in network value, with price action signaling a return to six figures. According to data from on-chain analytics platform CryptoQuant, we are observing unprecedented highs in Bitcoin’s realized cap, reflecting a robust market sentiment.
Realized Cap: A Measure of Growing Conviction
The realized cap gives insight into Bitcoin’s market value, calculated based on the last recorded movement of its extant supply on-chain. This metric has reached an impressive $891 billion as of May 7, marking a continuous upward trend since mid-April.
Carmelo Alemán, a contributor at CryptoQuant, noted in a recent blog post: “Bitcoin has experienced a steady flow of capital inflows in recent weeks, reflecting renewed interest from investors.” This trend indicates a significant long-term market shift across Bitcoin investors, highlighting a growing confidence in its potential as a financial asset.
“With sustained accumulation from both long-term holders (LTHs) and short-term holders (STHs), the market seems to be laying a solid foundation for a potentially significant price breakout. If this trend continues, we could be witnessing the early stages of a new bull cycle for Bitcoin.”
Ongoing BTC Capital Influx Since 2023
Concerns about the current market rebound have been noted, particularly regarding profit-taking, which some skeptics argue may threaten price stability. Furthermore, both LTHs and STHs are capitalizing on the opportunity to secure profits, which have averaged $1 billion daily.
As highlighted in Glassnode’s latest newsletter, the market conditions appear to be balanced around the $100,000 mark. “A surge in profit-taking can be observed in recent weeks, with the recent rally attracting over $1B/day in net capital inflows,” the report stated.
“This points to initial indicators of a return of demand-side strength, allowing sellers to lock in profits, and signifies buyers willing to acquire coins at current market prices. Overall, this creates a wave of demand that absorbs incoming supply.”
Glassnode concluded that the pursuit of profits has extended over 18 months, reiterating that the market has been in a profit-driven regime since October 2023. The continuous influx of fresh capital serves as a promising signal for market health.
This article does not offer investment advice or recommendations. Any investment carries risks, and readers are recommended to conduct their own research before making decisions.
