Bitcoin Market Goes through a Stagnation as the Realized Cap Shows a Plateaued Movement

The Bitcoin market is now going through stagnation as both the supply and demand are displaying inactivity. Glassnode, a crypto analytics firm

The Bitcoin market is currently experiencing a period of stagnation, with both supply and demand displaying signs of inactivity. This development has been mirrored in the lowest capital outflows and inflows in the Bitcoin market, according to Glassnode, a crypto analytics firm. The analytics platform unveiled this development via its official X account.

Bitcoin Market Stagnates as Realized Cap Plateaus

In its recent report, Glassnode highlighted that the stagnant Realized Capitalization is largely expressing the present scenario in the Bitcoin market. Operating as a key metric, Realized Capitalization assesses the total capital net flow into the entire Bitcoin network. According to Glassnode, the Realized Capitalization of Bitcoin has been plateaued at $622B over the recent couple of months. This indicates that the majority of the tokens are being transferred near their acquisition price.

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Moreover, the Realized Capitalization is also hinting at the deficient market activity. Another metric that measures the regular changes in the capital flows on-chain is the Net Realized Profit/Loss. Its analysis makes it clear that the Bitcoin market is coming closer to an equilibrium state. This denotes a balance between the loss and profit at large while the capital net flow maintains a marginal position.

Demand on BTC Network Showing Deficient Momentum Like Last Year

The behavior is reflecting the trends that were recorded back in last year’s August-September phase. During that time, the market went through an analogous deficient momentum. The present stagnation can signify a decrease in the demand overall. The metrics concerning the realized loss and profit suggest that relatively fewer investors are transferring assets at a profit. This further implies an overall deficient buying pressure.

Bitcoin Volatility Witnesses Compression

Glassnode’s statistics assert that a notable tightening of the existing $BTC has taken place in terms of supply. The “Hot Supply” metric tracks tokens having an age of less than seven days. The respective metric specifies that these tokens account for only 4.7% of the cumulative wealth on the Bitcoin network. Other developments include a rise in the stablecoin liquidity as well as the compressed volatility over the last 6 months.

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