Bitcoin News Today: Bitcoin Realized Capitalization Surpasses $1 Trillion Mark

Bitcoin has achieved a significant milestone as its realized capitalization surpassed the $1 trillion mark for the first time. This development comes just days after the cryptocurrency's spot price hit a new all-time high above $123,000, underscoring the robust investor demand in recent times. Unlike traditional market capitalization, realized cap measures the value of Bitcoin based on the price at which each coin last moved on-chain. This method provides a more accurate reflection of the actual capital stored within the network and is widely regarded as a better indicator of investor confidence.

James Check, an on-chain analyst, emphasized the importance of this metric, describing it as the "most important Bitcoin market metric." He explained that realized cap values each coin at the price when it last transacted on-chain. For instance, if an investor had purchased 0.1 BTC at $10,000, it would be valued at $1,000, regardless of the current spot price. When the coin transacts again, it is revalued, capturing the flow of capital into or out of the asset. According to Check, this means that Bitcoiners have "saved" $1 trillion in real capital in Bitcoin.

Glassnode, an on-chain analytics firm, revealed that 25% of Bitcoin’s realized cap was added this year. This reflects the accelerating inflow of capital into the asset amid broader macro and institutional interest. The surge in realized cap indicates a strong conviction among investors, who are increasingly viewing Bitcoin as a store of value.

Following this milestone, market analysts have cautioned that Bitcoin must overcome a key resistance level at $123,370 before targeting new highs. Joao Wedson, CEO of blockchain analytical firm Alphractal, warned that Bitcoin’s recent rejection at this second “Alpha Price” level is a short-term red flag. The Alpha Price is a dynamic on-chain model that blends realized price, historical average cap, and other factors to estimate likely resistance and support zones. Wedson explained that these thresholds reflect shifts in investor sentiment and can define where buyers and sellers are likely to react.

If Bitcoin's price can overcome the resistance at $123,370, Alphractal forecasts the next major target between $143,000 and $146,000. However, the risk of an overheated derivatives market looms. Long positions, or traders betting on further price increases, have been dominating in recent months. While this reflects bullish sentiment, it also increases the risk of a sudden "Long Squeeze," a situation where falling prices liquidate overleveraged longs and could amplify downward pressure on the market.