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

Bitcoin Realized Cap just set a new record

This is evident from data from the on-chain analysis company Glass junctionCapital inflows into Bitcoin have been accelerating lately based on the trend in the cryptocurrency’s Realized Cap.

The “Completed hood” here refers to an on-chain capitalization model for BTC that calculates the total value of the asset by assuming that the “real” value of each coin in circulation is the price at which it last traded on the network. This previous transfer of a coin is likely the last point at which it changed hands, so the price at that time could be considered the current cost basis. As such, the Realized Cap is a sum of the cost base of all coins in circulation.

One way to look at the model, therefore, is as a measure of the total amount of capital that investors have put into the cryptocurrency. The usual, on the other hand market capitalizationwhich calculates the total value of the BTC supply at the current spot price, represents the value holders currently carry.

Here is the chart shared by Glassnode showing the Bitcoin Realized Cap trend and 30-day change over the past few years:

Bitcoin Realized Cap

The value of the metric appears to have been heading up in recent months | Source: Glassnode on X

The chart shows that the Bitcoin Realized Cap has seen almost entirely positive growth since the beginning of 2023, as the metric’s 30-day net change has remained green.

The indicator’s rise was slow for most of last year, but started to rise as 2024 approached. And in the first quarter of this year, the metric set a new record when the 30-day change reached positive levels and the Bull Run 2021 highlights.

Because the Realized Cap represents the amount invested by investors as a whole, the 30-day change in value reflects the capital flows into or out of the asset. The chart shows that BTC’s ATH coincided with peak inflows into the coin earlier this year.

However, during the asset consolidation that followed the high, demand moderated with the Realized Cap witnessing a slowdown. The trend has finally changed again recently, as the net change in the 30-day metric has once again soared.

Over the past month, the indicator has grown by approximately $21.8 billion, taking it to a new record high of over $646 billion. Glassnode has noted that this suggests “liquidity is rising across the asset class, and meaningful capital inflows are supporting price growth.”

BTC price

Despite the sharp capital inflows, the Bitcoin rally has stalled as the coin’s price is still trading around $68,000.

Bitcoin price chart

Looks like the price of the coin has been consolidating recently | Source: BTCUSDT on TradingView

Featured image from Dall-E, Glassnode.com, chart from TradingView.com

By newadx4

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