Bitcoin Realized Cap Sets New Record, But Momentum Fades

NewsBTC
Updated
Mitrade
coverImg
Source: DepositPhotos

On-chain data shows the Bitcoin Realized Cap has surged to a new all-time high (ATH) recently, but monthly inflows have slowed down considerably.


Bitcoin Realized Cap Is Growing At A Notably Slower Rate Now


According to data from the on-chain analytics firm Glassnode, the Realized Cap of Bitcoin has just set a new record. The “Realized Cap” here refers to a capitalization model for Bitcoin that calculates the asset’s total value by assuming the ‘real’ value of any token in circulation is equal to the spot price at which it was last transacted on the network.


The last transaction of a given coin is likely to represent the last point at which it changed hands, so the price at the time of the move would denote the coin’s current cost basis.


As the Realized Cap sums up this acquisition value for all tokens part of the circulating supply, it essentially determines the amount of capital that the investors as a whole have used to purchase Bitcoin.


Now, here is the chart for the indicator shared by the analytics firm that shows the trend in its value over the last few years:


Bitcoin Realized Cap


As displayed in the above graph, the Bitcoin Realizzed Cap has been following an uptrend for a while now. Whenever the indicator’s value rises, it means a net amount of capital is flowing into the cryptocurrency. Thus, the long-term surge would imply BTC has been enjoying continuous inflows.


That said, while capital has been flowing in without break, the growth rate has fluctuated over the cycle. From the chart, it’s visible that the Realized Cap saw a particularly sharp rise during two periods: Q1 2024 and Q4 2024.


The Q1 2024 phase was followed by a rapid slowdown in capital inflowsm and so far, it would appear that the Q4 2024 one has been seeing something similar. At the height of inflows in December, the growth rate of the metric stood at around 13% per month. Today, this value has declined to just 0.9% per month.


Growth is still continuing, of course, and the indicator has managed to set a new record of $872 billion. But as Glassnode has explained, the slowdown could indicate “investor appetite is softening – signaling continued risk-off sentiment.”


Both the periods of fresh capital inflows last year coincided with bull rallies for Bitcoin, while the phase of slowdown in between the two resulted in bearish consolidation for the cryptocurrency.


The latest drop in Realized Cap growth has so far resulted in a notable drawdown for the asset’s price. Given the trend of last year, it’s possible that a proper reversal may not happen for BTC until the metric catches a sharper uptrend.


BTC Price


Bitcoin has taken to sideways movement over the last few days as its price is still floating around the $84,700 mark.


Bitcoin Price Chart

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Coinbase Faces Backlash After Insider Leak IncidentCoinbase, the largest US-based crypto exchange on trading volume metrics, is facing intense backlash after Thursday reports indicated a rogue employee leaked sensitive customer data.
Author  Beincrypto
17 hours ago
Coinbase, the largest US-based crypto exchange on trading volume metrics, is facing intense backlash after Thursday reports indicated a rogue employee leaked sensitive customer data.
placeholder
BNB Price Finds Its Footing — Can Bulls Ignite the Next Leg Up?BNB price is consolidating above the $640 support zone. The price is now showing positive signs and might aim for more gains in the near term. BNB price is attempting to recover from the $640 support
Author  NewsBTC
19 hours ago
BNB price is consolidating above the $640 support zone. The price is now showing positive signs and might aim for more gains in the near term. BNB price is attempting to recover from the $640 support
placeholder
Bitcoin Seeing 309,000 New Addresses Per Day: How Do XRP & Ethereum Compare?In a new post on X, the on-chain analytics firm Santiment has discussed about how the average Network Growth has been like for the top assets in the sector during the past month.
Author  Bitcoinist
20 hours ago
In a new post on X, the on-chain analytics firm Santiment has discussed about how the average Network Growth has been like for the top assets in the sector during the past month.
placeholder
Ethereum Goes Heavy On Defense With Trillion-Dollar Security InitiativeEthereum’s nonprofit arm rolled out a major security drive on May 14. It aims to shore up wallets, smart contracts, and the network itself. The move comes as more money flows onto the blockchain, with a plan big enough to protect “trillions” in digital assets.
Author  Bitcoinist
20 hours ago
Ethereum’s nonprofit arm rolled out a major security drive on May 14. It aims to shore up wallets, smart contracts, and the network itself. The move comes as more money flows onto the blockchain, with a plan big enough to protect “trillions” in digital assets.
placeholder
Bitcoin Near ATH, But Long-Term Holders Aren’t Selling – More Upside Ahead?Fresh on-chain data suggests that despite Bitcoin (BTC) trading close to its all-time high (ATH), long-term holders (LTHs) are not offloading their holdings.
Author  NewsBTC
22 hours ago
Fresh on-chain data suggests that despite Bitcoin (BTC) trading close to its all-time high (ATH), long-term holders (LTHs) are not offloading their holdings.
Real-time Quote