Bitcoin Realized Cap Hits $900 Billion All-Time High Amid Investor Profits

Bitcoin's recent rally has shown remarkable strength, with one key metric reaching unprecedented levels. According to the digital asset analytics firm Glassnode, Bitcoin’s Realized Cap, which tracks the price at which each coin was last moved and aims to gauge the profitability of holders, has hit a new all-time high. This metric indicates that a significant portion of Bitcoin investors are currently in profit, contributing to the overall robustness of the market.

Glassnode noted that the elevation in Bitcoin's price has led to increased profitability for the majority of market investors, many of whom have seized the opportunity to lock in profits. This has resulted in a marked increase in capital inflows, pushing the Realized Cap above $900 billion for the first time. This historic milestone underscores the depth of liquidity in the market, suggesting that the rally remains robust despite recent price fluctuations.

Short-Term Holders (STHs), those who have held their coins for less than 155 days, have sold at massive profits in the last month. Despite this selling pressure, Bitcoin has continued to absorb the market's movements, maintaining its upward trajectory. Glassnode reported that STHs have realized over $11.4 billion of profit across the last month, indicating a notable increase in spending activity within this cohort.

Since Bitcoin plummeted to a local low of around $74,000 in early April, the market value to realized value (MVRV) metric has soared for both STHs and Long-Term Holders (LTHs). The MVRV metric gauges the market’s sentiment and valuation of a crypto asset, and a rising MVRV suggests that holders are sitting on more unrealized profit. This boosts confidence and reduces sell pressure, supporting the ongoing rally.

For STHs, the MVRV has increased from 0.82 to 1.13, moving from a -18% loss to a +13% gain. For LTHs, the MVRV has risen from 2.91 to 3.30, indicating a significant increase in profitability. This widespread profitability across different holder cohorts has contributed to the overall confidence in the market, further supporting the rally.

Bitcoin reached a new all-time high on Wednesday, briefly breaking past $110,000 for the first time in its history. Although the top crypto asset has since retraced, it is currently trading at $109,686, up 2.6% in the last 24 hours. This price movement highlights the continued strength of the rally, despite short-term fluctuations.