Bitcoin News Today: Bitcoin's $1T Realized Cap Hints at Institutional Confidence Surge

Bitcoin May Be Entering a Late-Bull Phase After $1 Trillion Realized Cap, Price Range Near $112k–$120k August 25, 2025

Bitcoin’s realized cap has reached an unprecedented $1 trillion, marking a significant milestone in the cryptocurrency’s history. This figure is calculated by assessing the value of all Bitcoins based on the price at which they were last moved, providing a more refined gauge of market strength compared to traditional market capitalization. The achievement reflects a growing influx of capital into Bitcoin, with investors increasingly choosing to buy and hold at higher valuations, signaling robust confidence in the asset class [1].

The growth trajectory of Bitcoin’s realized cap has shown marked acceleration in recent years. It took about two years from 2011 to 2013 for the realized cap to rise from $1 million to $1 billion, but the leap from $100 billion to $1 trillion spanned nearly six years, illustrating the increasing capital required for each subsequent growth phase [2]. Currently, Bitcoin’s overall market capitalization exceeds $2.1 trillion, positioning it as the sixth-largest asset globally by this metric [2].

Bitcoin is currently ranging between $112,000 and $120,000, with significant liquidity pools forming at both ends of this price band. This consolidation phase, as observed by cryptocurrency analyst @CrypNuevo, is characterized by a notable concentration of both buy and sell orders near these levels, which could trigger sharp price movements if breached [3]. Recent liquidation activity in the short-term options market has also intensified, with nearly $2 billion in short positions at risk of liquidation if BTC reaches the upper boundary of this range, potentially leading to a rapid price surge [1].

The market dynamics suggest Bitcoin is in the late stage of a bull cycle, as indicated by the Bitcoin Index Market Phase, which places the market in phase 4—just below the 0.6 threshold. This phase is typically marked by high unrealized profits but not yet at euphoric levels. The 7-day moving average of the BTC Spent Volume has cooled to 545k Bitcoin per day, which is notably lower than the 900k–1M coins per day typically seen during peak distribution periods. This decline in volume suggests that large profit takers are less active, supporting a neutral-to-bullish outlook [4].

Bitcoin’s 90-day price return has remained flat at approximately 5%, highlighting the market’s consolidation rather than a new uptrend. The Short-Term Holder Realized Price is at $116,000, indicating that further sideways movement is likely in the near term. A correction toward $100,000 is possible, but there are signs of resilience in the market, with recovery signals persisting. Historically, August and September tend to be volatile months, and a pullback to collect liquidity before the next move is a plausible scenario [4].

Institutional activity has also shown signs of increased demand, with one notable example being a long-dormant Bitcoin whale recently activating after seven years. This whale, which initially received 100,784 BTC ($642 million), rotated a significant portion of its holdings into Ethereum, purchasing 62,914 ETH ($267 million) and opening a leveraged long position of 135,265 ETH ($577 million). This move highlights a broader trend of strategic asset rotation in the crypto space, particularly as institutional players adopt more diversified and hedged strategies [5].

Source:

[1] Bitcoin breaks $1T realized cap! A $2B short squeeze lies ... (https://ambcrypto.com/bitcoin-breaks-1t-realized-cap-a-2b-short-squeeze-lies-in-waiting/)

[2] Bitcoin Realized Cap Nears $1 Trillion as Institutional Demand Surges (https://cryptorank.io/news/feed/40287-bitcoin-realized-cap-1-trillion-institutional-buying)

[3] BTC Trader Alert: 112k-120k Range With Dual Liquidity Pools and Liquidations Signal Deviation Setup (https://blockchain.news/flashnews/btc-trader-alert-112k-120k-range-with-dual-liquidity-pools-and-liquidations-signal-deviation-setup)

[4] Bitcoin's late bull stage: $1T cap, low profit-taking, and ... (https://ambcrypto.com/bitcoins-late-bull-stage-1t-cap-low-profit-taking-and-whats-ahead/)

[5] Dormant Bitcoin Whale Awakens: BTC OG Rotates Into ... (https://www.mitrade.com/insights/news/live-news/article-3-1063007-20250823)