Bitcoin’s (BTC) realized market cap has recently soared to a historic high of $872 billion, indicating substantial investor interest. However, data from analytics platform Glassnode raises questions about the current market enthusiasm as the monthly growth rate of this metric has dwindled to just 0.9% month-over-month, suggesting a prevailing risk-off sentiment among traders.
Realized cap, which measures the total value of all Bitcoin at the price they last moved, provides crucial insights into the economic activity of Bitcoin. A declining growth rate reveals a reduction in capital inflow, hinting that fewer new investors are joining the market and that current holders may be less active.
Moreover, Glassnode’s realized profit and loss chart has recently registered a sharp 40% decline, a signal typically indicative of high profit-taking or loss realization. As the analysts explain, this trend often precedes a consolidation phase where the market searches for a new equilibrium.
With new investors seemingly on the sidelines and existing investors likely taking a cautious stance, the short-term holders of Bitcoin are particularly affected. According to CryptoQuant, the current short-term realized price stands at $91,600. As Bitcoin navigates under this threshold, short-term holders may be under water, potentially increasing the selling pressure as they attempt to mitigate losses.
Similarly, the market value to realized value ratio for Bitcoin’s short-term holders remains below 1, a historical marker for potential buying opportunities and further evidence that short-term holders currently find themselves at a loss.
Bitcoin Trading Trends: A Tale of Divergence
Analysis from CryptoQuant reveals a notable divergence in sentiment between Bitcoin traders in the US and Korea. The Coinbase premium, which reflects US trading dynamics, recently surged, signaling strong demand and potential upward price movement for Bitcoin.
In stark contrast, the Kimchi premium index has dipped during recent corrections, reflecting a slowdown in retail engagement among traders based in Korea.
This discrepancy in trading dynamics is evident in Bitcoin’s recent price movements, oscillating within a tight range of $85,440-$82,750 since April 11. On the 4-hour chart, BTC has managed to hold support from its 50-day, 100-day, and 200-day moving averages. Yet, on the 1-day chart, these indicators have begun to act as resistance against a bullish structure.
This article does not provide investment advice or recommendations. Every investment and trading action carries risk, and it is essential for readers to conduct their own research before making decisions.
