Bitcoin's Realized Cap Surges to $850 Billion, Signaling New Bull Market

Bitcoin's realized cap has surged to $850 billion, marking a significant milestone in its journey towards a new bull market. This remarkable growth highlights Bitcoin's increasing adoption and signals a shift in market dynamics as investors look to capitalize on its potential.

According to Glassnode's latest analysis, "Both the Realized Cap, and the economic volumes settled by the Bitcoin network offer empirical evidence that Bitcoin both has 'value' and 'utility'." Bitcoin's realized cap exceeds $850B, marking a significant milestone in its journey towards a new bull market, as capital inflows surge past $500B.

Bitcoin has seen unprecedented capital inflows, totaling nearly $500 billion since the lowest point of the 2022 bear market. These inflows have propelled its realized cap—defined by the price at which each coin last transacted—to unprecedented levels. If we benchmark from the cycle low set in Nov 2022, when the Realised Cap was $400B, Bitcoin has since absorbed an additional capital inflow of approximately +$450B, more than doubling the Realized Cap. With the current realized cap now standing at around $850 billion, Bitcoin presents a compelling narrative of growth.

Over the past year, the daily settlement volume has consistently hovered around $9 billion, culminating in over $3 trillion in transactions settled on the Bitcoin network. This strong performance counteracts criticisms regarding its utility and value, demonstrating Bitcoin's evolving role in the financial ecosystem.

Examining the inflow trends sheds light on the atypical nature of the current Bitcoin cycle. Historically, price peaks have seen a surge in the wealth proportion held in coins that last transacted within the prior three months. Yet, the recent cycle deviates from this norm. While new demand this cycle is meaningful, the wealth held in three-month-old coins is much lower than it was in previous cycles. This indicates that the demand is not consistent but occurs in spikes, which could reflect changing investor behavior in the crypto sphere.

Glassnode's analysis points to the notion that the current bull market identity is "atypical." Notably, all previous cycles concluded approximately one year after the initial all-time high (ATH) was established. This time, however, the first new ATH occurred in March 2024, suggesting that the trajectory of Bitcoin's price may be