Bitcoin's Realized Cap: Bull Run Not Over Yet

Bitcoin (BTC) may have more room to run to the upside, according to prominent on-chain analytics firm Glassnode. The company points to BTC's Realized Cap, an indicator that tracks net capital inflows into the cryptocurrency, as a key driver of bull markets. So far, Realized Cap has grown 2.1x from the 2022 low, below the 5.7x peak of the last cycle, suggesting that the typical euphoric phase has not yet fully materialized.

Glassnode also notes that Bitcoin's current cycle appears to be following the footsteps of its 2015-2018 bull run, which was largely driven by spot market investors. Despite a much larger market cap, pullbacks have rarely exceeded -25%, reflecting strong demand, ETF inflows, and Bitcoin's role as a macro asset. The analytics firm suggests that when new demand materializes, price action tends to accelerate in a "second euphoric phase." While a 100x rally from the low, like in 2015, is unlikely at today's scale, there may still be room for further expansion if demand strengthens.

At the time of writing, BTC is trading at $101,807, down more than 3.5% in the past 24 hours. Despite the recent dip, Glassnode's analysis suggests that Bitcoin's fundamentals remain strong, and the cryptocurrency may have more room to run to the upside in the long term.