Recent data reveals that Bitcoin’s ‘Realized Cap,’ which is similar to the market cap but considers the last trade price of BTC rather than the current price, has touched a new high of $656 billion. Glassnode data indicates that the realized cap of Bitcoin has risen by 3.8% in the last 30 days, which represents one of the highest monthly flows since January last year.
The #BitcoinRealized Cap has increased by 3.8% over the last 30 days, which is one of the higher inflow levels since January 2023. The Realized Cap is currently trading at an ATH value of $656B, supported by a net 30-day capital inflow of $2.5B. pic.twitter.com/8mPOlKz7Vw — glassnode (@glassnode) November 8, 2024
30-Day Inflows of $2.5 Billion Drive Up Realized Cap
Glassnode revealed Bitcoin has witnessed a net inflow of $2.5 billion within the past 30 days. This marked inflow of fresh capital shows the revival of interest and a new wave of investment in cryptocurrency by institutions and the public. If Bitcoin’s realized cap is rising, it means investors are trading at higher prices, which shows that they are confident of the digital asset in the future.
This inflow is also favourable to the current prevailing market trend since the price of Bitcoin has been on the rise lately. This increased capital shows a shift to accumulation, which is evidenced by the fact that holders may be more positive about the currency’s ability to advance even further.
Strong Inflows Signal Bullish Sentiment
Bitcoin’s on-chain metric, realized cap, turned higher, which is a good signal of the continued market’s stability and demand along with investors’ desire to pay even more adjusting to the given price for the asset. An increase in the realized cap often means that buyers are using price drops to stock up on Bitcoin, suggesting to others that the market might be a good place to invest again.
By using Glassnode’s data, it is possible to claim that such a level of influx is observed extremely rarely, and there have been almost no predecessors in the recent few years as far as influx is concerned. The 30-day increase, even if it is 3.8%, is a good positive signal of capital confidence, and some analysts believe that this may precede further price rises in the near future.
The Road Ahead for Bitcoin
Since Bitcoin’s realized cap is reshaping records, investors are carefully tracking sustained inflow’s potential impact on the asset. Nonetheless, the inflation trend must be viewed with caution because history indicates that large-scale purchases are typically succeeded by liquidation.