Bitcoin Price Stable Above $107,000 Amid Market Equilibrium

Bitcoin's price has remained stable above $107,000, reflecting a balanced market condition. The Realized Supply ratio, which compares the current price to the historical cost basis of all Bitcoin in circulation, indicates that the market is neither overbought nor oversold. This metric suggests a consolidation phase, where the price and realized supply converge near historical levels, signaling market equilibrium.

The Realized Supply ratio is a key indicator that measures the aggregate cost basis of all Bitcoin in circulation. By comparing the spot price to this realized supply, the ratio provides a valuation similar to the price-to-earnings ratio used in traditional stock markets. A higher ratio can indicate an overbought market, while a lower ratio suggests potential undervaluation. Currently, the ratio is approaching historically high levels, similar to those seen prior to the past two rallies, including November 2024, when Bitcoin's value increased to $107,000 from $74,000.

Bitcoin's market cycles, as reflected by the Realized Supply metric, have shown clear periods of bullish and bearish sentiment. The bear market phase in late 2022 and early 2023 saw prices trading between $15,000 and $20,000, with realized supply exceeding the market price, signaling oversold conditions. This was followed by an extended bull run through 2023 into 2024, with Bitcoin rising to nearly $100,000 by late 2024. During this time, realized supply trended below the market price, illustrating strong investor confidence.

Entering 2025, Bitcoin experienced a brief bear phase before moving into a smaller bull market. The latest figures indicate that the price and realized supply converged around the $60,000 to $70,000 range before a renewed stabilization above $107,000, suggesting market equilibrium. As of the latest data, Bitcoin’s price was trading at $107,651.16, marking a 0.25% gain in the past 24 hours. Despite some intraday volatility, with prices fluctuating between $107,360 and peaks above $108,700, Bitcoin maintains its dominance with a market capitalization of $2.14 trillion, showing a 0.24% increase.

The last 24-hour trading volume increased by almost 33% to stand at 39.11 billion, signifying greater market participation. The relevant ratio of volume to market cap is 1.82%, indicating medium liquidity given the size of the asset. Its fully-diluted valuation, i.e., the total market cap that could be achieved should all 21 million coins be minted, is at a value of $2.26 trillion. The total supply and circulating supply have been stable, with the two values being close to 19.88 million BTC, showing proof of protocol of a fixed supply of Bitcoins.

According to the analyst's forecast, the market is in a neutral stage, and there is no sign that it is being overstretched or underpriced. The convergence of price and realized supply near historical levels suggests a balanced market condition, with strong liquidity and investor confidence. This stability indicates that Bitcoin's market is in a consolidation phase, with no immediate signs of a significant price movement in either direction.