Bitcoin's realized cap is on the verge of hitting a major milestone, approaching the $900 billion mark, marking a significant achievement in the cryptocurrency space. This indicator reflects the value of Bitcoin in US dollar terms based on the last movement of the existing supply on the blockchain. The realized cap of Bitcoin has been consistently hitting new all-time highs since mid-April and as of May 7, it stood at $891 billion, according to data from onchain analytics platform CryptoQuant.

The surge in Bitcoin's realized cap is seen as a reflection of the growing conviction among investors in the long-term potential of Bitcoin as a financial asset. Carmelo Alemán, a contributor at CryptoQuant, highlighted the steady inflow of capital into Bitcoin in recent weeks as a sign of renewed interest from investors. Alemán suggested that the increase in realized cap not only signifies a surge in invested capital but also demonstrates a growing confidence in Bitcoin's future prospects.

Moreover, the market is currently witnessing a balance between buy and sell-side conditions at around the $100,000 price level, according to research firm Glassnode. Despite concerns about profit-taking potentially impacting the current market rebound, Glassnode's analysis suggests that the market is absorbing supply as demand remains strong. The firm noted that there has been a consistent influx of fresh capital into Bitcoin for over 18 months, indicating a sustained bullish sentiment among investors.

The ongoing trend of profit-taking, with LTH and STH entities locking in profits averaging $1 billion daily, has raised some doubts about the sustainability of higher prices. However, Glassnode's observations point to a healthy market dynamic where demand is absorbing the influx of supply, supporting the current price levels and potentially paving the way for further price appreciation.

In conclusion, the recent surge in Bitcoin's realized cap and the balanced buy and sell-side conditions indicate a positive outlook for the cryptocurrency. With growing investor confidence and steady capital inflows, the market seems to be building a strong foundation for a potential significant price breakout. While risks are inherent in any investment or trading decision, the current market dynamics suggest a favorable environment for Bitcoin's future growth and potential price rally.

Source: https://cointelegraph.com/news/new-bull-cycle-bitcoin-return-100k-significant-price-move?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound