Bitcoin's Realized Cap Surpasses $850 Billion, Solidifying Global Macro Asset Status

Bitcoin's realized capitalization has reached $850 billion, solidifying its status as a global macro asset. This milestone, as reported by Glassnode, reflects Bitcoin's growing influence on the global stage, attracting institutions and nations alike.

Since November 2022, Bitcoin has absorbed approximately $450 billion in additional capital, bringing its total realized capitalization to $850 billion. This growth coincides with Bitcoin maintaining a price above $100,000 for several weeks, seven years after reaching $10,000 during the 2017 bull run.

The report highlights nation-states engaging with Bitcoin as a key factor in its growth. Bhutan's large-scale mining operations, El Salvador's establishment of Bitcoin as legal tender, and the US's consideration of Bitcoin as a strategic reserve asset are notable examples.

Despite ongoing debates about its intrinsic value and utility, Bitcoin has become one of the largest global assets. With a market capitalization of $2 trillion, it has surpassed silver's $1.8 trillion, Saudi Aramco's $1.8 trillion, and Meta's $1.7 trillion market caps.

As Bitcoin's valuation increases, larger capital inflows are required to sustain its market growth. The Realized Cap metric, which tracks the cumulative net capital inflow, underscores Bitcoin's growth. Additionally, the Bitcoin network has processed an average of $8.7 billion daily in adjusted economic transactions over the past year, totaling $3.2 trillion in transaction volume.

Since the collapse of FTX in November 2022, Bitcoin's dominance within the digital asset ecosystem has increased, rising from 38% to 59%. Bitcoin's market capitalization has increased 5.3x from $363 billion to $1.93 trillion, while the altcoin market has expanded 4.7x from $190 billion to $892 billion. Despite the high correlation between Bitcoin and altcoins, BTC has attracted a disproportionately larger share of new capital.

Institutional investors have preferred Bitcoin, facilitated by US spot Bitcoin exchange-traded funds (ETFs). The report attributes this interest to Bitcoin's inherent scarcity and its role as a hedge against fiat currency debasement. However, the increasing interest from nations and institutions has not been enough to generate new demand for Bitcoin