On-chain data shows that Bitcoin Realized Cap recently set a up-to-date all-time high (ATH) as the market witnessed a surge in capital inflows.
Limit realized Bitcoin just set a up-to-date record
According to data from an on-chain analytical company Glass knotCapital inflows into Bitcoin have recently accelerated based on the cryptocurrency’s realized cap trend.
The “realized cap” here refers to the on-chain cap model for BTC, which calculates the total value of an asset by assuming that the “real” value of each coin in circulation is the price at which it was last traded on the network. This previous transfer of any coin will likely be the last time it changed hands, so the price at that point can be considered the current cost basis. Therefore, the realized cap is the sum of the costs of all coins in circulation.
Therefore, one way to look at the model is as a measure of the total amount of capital that investors have put into the cryptocurrency. In contrast, uncomplicated market cap, which calculates the total value of the BTC supply at the current spot price, represents the value that holders currently carry.
Here is a chart provided by Glassnode that shows the trend of Bitcoin’s realized limit and its 30-day change over the last few years:
The value of the metric appears to have been heading up in recent months | Source: Glassnode on X
From the chart, we can see that Bitcoin’s realized value is almost entirely seeing positive growth since the beginning of 2023, as the 30-day net change in the indicator remains green.
The index’s growth was tardy for most of last year, but has started to pick up as 2024 approaches. The index set a up-to-date record in the first quarter of this year as its 30-day change moved to positive levels, surpassing 2021 highs.
Since realized capitalization represents the amount invested by investors as a whole, the 30-day change in its value reflects capital flows flowing in and out of the asset. It is clear from the chart that BTC’s ATH at the beginning of the year coincided with peak coin inflows into the coin.
However, during the asset consolidation that followed the peak, demand was subdued and realized capitalization slowed. Recently, the trend has finally reversed as the 30-day net change in this indicator has increased again.
Over the past month, the index increased by approximately $21.8 billion, reaching a up-to-date record of more than $646 billion. Glassnode noted that this suggests that “liquidity is increasing across the asset class and significant capital inflows are supporting price growth.”
BTC price
Despite the surge in capital inflows, Bitcoin’s growth has stalled as the coin’s price continues to hover around $68,000.
Looks like the price of the coin has been consolidating recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
