On-chain data shows that bitcoin Realized Cap has set a new all-time high (ATH) recently as the market has witnessed strong capital inflows.
bitcoin Realized Limit Just Set a New Record
According to data from the on-chain analysis firm x.com/glassnode/status/1849478813211636180″ target=”_blank” rel=”noopener nofollow”>glass nodeCapital inflows into bitcoin have recently accelerated based on the cryptocurrency's realized cap trend.
The “realized limit” here refers to an on-chain capitalization model for btc that calculates the total value of the asset assuming that the “real” value of each coin in circulation is the price at which the last transaction was made 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 that time could be considered its current cost basis. As such, the realized limit is a sum of the cost basis of all coins in circulation.
Therefore, one way to view the model is as a measure of the total amount of capital that investors have invested in the cryptocurrency. In contrast, the usual market capitalization, which calculates the total value of the btc supply at the current spot price, represents the value that holders have at the moment.
Now, here is the chart shared by Glassnode showing the trend in bitcoin's realized limit and its 30-day change over the past few years:
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The value of the metric appears to have been heading up in recent months | Source: x.com/glassnode/status/1849478813211636180/photo/1" target="_blank" rel="noopener nofollow">Glassnode on x
From the chart, you can see that bitcoin's realized cap has been almost entirely seeing positive growth since early 2023, as the metric's 30-day net change has remained in the green.
The indicator's rise was slow for much of last year, but began to accelerate once 2024 approached. And in the first quarter of this year, the metric set a new record, as its 30-day change reached positive levels which surpassed the 2021 bull market highs.
Since the realized limit represents the amount that investors as a whole have invested, the 30-day change in its value reflects capital flows into or out of the asset. It is clear from the chart that btc's ATH at the beginning of the year coincided with the coin's peak inflows.
However, during the asset's consolidation that followed the peak, demand weakened and the Realized Cap witnessed a slowdown. The trend has finally changed again recently, as the 30-day net change in the metric has increased again.
Over the past month, the indicator grew by around $21.8 billion, taking it to a new record of over $646 billion. Glassnode has noted that this suggests that “liquidity across the asset class is increasing and significant capital inflows are supporting the price increase.”
btc Price
Despite heavy capital inflows, bitcoin's rally has stalled as the coin's price is still trading around $68,000.
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Looks like the price of the coin has been consolidating recently | Source: BTCUSDT on TradingView
Featured image by Dall-E, Glassnode.com, TradingView.com chart
