Bitcoin Realized Cap Hits Record $891B, Fueling Bullish Breakout Hopes

Bitcoin’s Realized Cap Nears $900B as Capital Inflows Signal Potential Breakout

  • Bitcoin’s realized cap approaches a record $900 billion as network value hits new highs.
  • Market analysis points to strong foundations for a potential major price breakout.
  • Ongoing profit-taking has not disrupted the overall upward momentum of the bull market.

Bitcoin has reached new milestones in network value, with its realized cap nearing $900 billion, according to recent data from CryptoQuant. This comes as Bitcoin’s price activity signals a possible return to six-figure levels, driven by steady investment and growing market participation.

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The realized cap, a metric showing the value at which the current Bitcoin supply last changed hands on the blockchain, hit $891 billion as of May 7. CryptoQuant contributor Carmelo Alemán noted that “Bitcoin has experienced a steady flow of capital inflows in recent weeks, reflecting renewed interest from investors.” Alemán described the realized cap’s rise as evidence of long-term confidence in Bitcoin’s potential as a mainstream financial asset.

This sustained increase has persisted since mid-April as BTC/USD stages a comeback. “This new all-time high in Realized Cap not only reflects a surge in invested capital but also a growing conviction in Bitcoin’s long-term potential as a financial asset,” wrote Alemán in a Quicktake blog post.

Both long-term holders (LTHs) and short-term holders (STHs) have been accumulating Bitcoin, building what analytics suggest is a solid base for a potential breakout. Alemán stated, “With sustained accumulation from both LTHs and STHs, the market appears to be building a solid foundation for a potentially significant price breakout”.

Cointelegraph reported that the capital inflow surge began in 2023 and continues despite ongoing profit-taking. Although investors are recording profits averaging $1 billion per day, Glassnode’s latest newsletter, The Week Onchain, finds the market remains balanced. The report states, “A surge in profit taking can be observed in recent weeks, with the recent rally drawing in over $1 billion/day in net capital inflows.”

According to Glassnode, profit-motivated activity has dominated since October 2023, but fresh capital inflows continue to outpace outflows. This, Glassnode explains, is an encouraging signal for Bitcoin’s ongoing recovery.

This article does not contain investment advice or recommendations. Each investment move involves risk, and readers should conduct their own research before making decisions.

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