Bitcoin Realized Cap Has Just Set A New Record

On-chain data shows the Bitcoin Realized Cap has set a new all-time high (ATH) recently as the market has witnessed sharp capital inflows.

Bitcoin (BTC) has seen a surge in capital inflows recently, as indicated by the all-time high (ATH) set by the Bitcoin Realized Cap, according to data from on-chain analytics firm Glassnode.

The “Realized Cap” is an on-chain capitalization model for BTC that calculates the asset’s total value by assuming that the ‘real’ value of each coin in circulation is the price at which it was last transacted on the network.

This previous transfer of any coin is likely to be the last point at which it changed hands, so the price at its time could be considered as its current cost basis. As such, the Realized Cap is a sum of the cost basis of all coins in circulation.

One way to look at the model, therefore, is as a measure of the total amount of capital that the investors have put into the cryptocurrency. In contrast, the usual market cap, which calculates the total value of the BTC supply at the current spot price, represents the value that the holders are carrying right now.

Here is a chart shared by Glassnode that shows the trend in the Bitcoin Realized Cap and its 30-day change over the past few years:

The Bitcoin Realized Cap has almost entirely observed positive growth since early 2023, as indicated by its 30-day net change remaining green throughout the period.

The indicator’s increase was gradual for most of last year, but it accelerated as 2024 approached. In Q1 of this year, the metric set a new record, as its 30-day net change reached positive levels that surpassed the 2021 bull run highs.

As the Realized Cap represents the amount that the investors as a whole have invested, the 30-day change in its value reflects the capital flows moving in or out of the asset. It’s apparent from the chart that BTC’s ATH earlier in the year coincided with the peak inflows into the coin.

During the asset’s consolidation that followed the high, though, the demand became muted, with the Realized Cap observing a slowdown. The trend has finally shifted again recently, as the 30-day net change in the metric has once more surged.

Over the past month, the indicator has grown by around $21.8 billion, which has taken it to a new record of over $646 billion. According to Glassnode, this suggests “liquidity across the asset class is rising, & meaningful capital inflows support the price increase.”

BTC Price Pauses Despite Capital Inflows

While the capital inflows have been substantial, the Bitcoin rally has paused for now, with the coin still trading at around the $68,000 level.

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