On-chain data indicates that Bitcoin's Realized Cap has recently surged to a new all-time high (ATH), yet the monthly inflows have notably slowed down.
Bitcoin Realized Cap Is Growing At A Notably Slower Rate Now
According to data from the on-chain analytics firm Glassnode, the Realized Cap of Bitcoin has just set a new record. The term Realized Cap refers to a capitalization model for Bitcoin that calculates the asset’s total value by assuming the ‘real’ value of any token in circulation is equal to the spot price at which it was last transacted on the network.
The last transaction of a given coin is likely to represent the last point at which it changed hands, so the price at the time of the move would denote the coin’s current cost basis. As the Realized Cap sums up this acquisition value for all tokens part of the circulating supply, it essentially determines the amount of capital that investors have used to purchase Bitcoin.
Growth Trend and Recent Developments
The Bitcoin Realized Cap has been following an uptrend for some time now. Whenever the indicator’s value rises, it signals that a net amount of capital is flowing into the cryptocurrency. This long-term surge implies that BTC has been experiencing continuous inflows.
However, the growth rate has fluctuated over the cycle. The Realized Cap saw a particularly sharp rise during Q1 2024 and Q4 2024. The Q1 2024 phase was followed by a rapid slowdown in capital inflows, and it appears that the Q4 2024 phase is experiencing a similar trend. At the peak of inflows in December, the growth rate stood at approximately 13% per month, but this has now declined to just 0.9% per month.
Growth is still continuing, and the indicator has reached a new record of $872 billion. However, as Glassnode has noted, this slowdown could indicate that investor appetite is softening, signaling a continued risk-off sentiment. Both periods of fresh capital inflows last year coincided with bull rallies for Bitcoin, while the phases of slowdown resulted in bearish consolidation for the cryptocurrency.
The latest drop in Realized Cap growth has led to a notable drawdown in the asset’s price. Given last year’s trends, a proper reversal may not occur for BTC until the metric shows a sharper uptrend.
BTC Price
Bitcoin has recently been moving sideways, with its price floating around the $84,700 mark.
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