On-chain data shows that the Bitcoin Realized Cap has set an all-time high (ATH) recently as the market has seen sharp inflows.
Bitcoin Realized Cap Just Set New Record
According to the data of the on-chain analytics company Glassnode, the income in Bitcoin has recently accelerated based on the trend of the cryptocurrency’s Realized Cap.
“Realized Cap” here refers to the on-chain model of capitalization of BTC that calculates the total value of the asset by assuming that the ‘real’ value of each coin in circulation is the value at which it was last sold on the network. This previous transfer of any coin may have been the last point at which it changed hands, so its value at the time can be considered the basis of its current cost. As such, the Realized Cap is the sum of the cost base of all coins in circulation.
Another way of looking at the model, therefore, is that it equates to the total amount of money investors put into cryptocurrency. In contrast, the standard market cap, which calculates the total supply of BTC at the current price, represents the amount that owners currently hold.
Now, here’s a chart shared by Glassnode that shows the trend in Bitcoin Realized Cap and its 30-day change over the past few years:
The value of the metric appears to have been heading up in recent months | Source: Glassnode on X
From the graph, it can be seen that the Bitcoin Realized Cap has been looking at positive growth since the beginning of 2023 as the 30-day metric change remains green.
The increase in the index was slow for most of last year, but it started to increase as 2024 approached. And in the first quarter of this year, the metric set a new record as its 30-day moving average reached levels well above the bull run highs of 2021.
Since Realized Cap represents the total amount investors have invested, the change in its 30-day value reflects the cash flow in or out of the asset. It is clear from the chart that BTC’s ATH at the beginning of the year coincided with the peak entering the currency frame.
During the commodity consolidation that followed the peak, however, demand was muted, and Realized Cap saw a decline. The situation has changed again recently, as the 30-day total change in the metric has increased again.
Over the past month, the index has grown by nearly 21.8 billion, bringing it to a new record of $646 billion. Glassnode noted that this suggests that “income in the asset class is increasing, and reasonable income is supporting price increases.”
BTC price
Despite sharp cash inflows, Bitcoin’s rally has taken a hit as the coin’s price is still trading 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
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