Bitcoin's Realized Market Cap Hits $872 Billion, Growth Slows to 0.9%

Bitcoin's realized market cap has reached a new all-time high of $872 billion, marking a significant milestone in the cryptocurrency's market valuation. However, the momentum appears to be slowing down, as indicated by a drop in the monthly growth rate of the realized cap to 0.9% month over month. This decline suggests a risk-off sentiment in the market, with investors adopting a cautious approach.

The realized cap, which measures the total value of all Bitcoin at the price they last moved, provides insight into the actual capital invested in the cryptocurrency. A slowing growth rate highlights a positive but reduced capital inflow, suggesting fewer new investors or less activity from current holders. Additionally, the realized profit and loss chart has exhibited a sharp decline of 40%, signaling high profit-taking or loss realization. This data suggests saturation in investor activity and often precedes a consolidation phase as the market searches for a new equilibrium.

Existing investors are likely adopting a cautious approach due to the short-term holder’s realized price, which is currently at $91,600. With Bitcoin consolidating under this threshold, it implies that short-term holders are underwater, which can increase selling pressure if they sell to cut their losses. The short-term holder market value to realized value remains below 1, a level historically associated with buying opportunities and further proof that short-term holders are at a loss.

There is a sentiment divergence between Bitcoin traders in the US and Korea. The Coinbase premium, reflecting US trading, recently spiked, signaling strong US demand and potential Bitcoin price gains. Conversely, the Kimchi premium index fell during the correction, indicating lagging retail engagement among Korea-based traders. This uneven demand is reflected in Bitcoin’s recent price action, which has oscillated between a tight range of $85,440-$82,750 since April 11. On the 4-hour chart, Bitcoin has retained support from the 50-day, 100-day, and 200-day moving averages, but on the 1-day chart, these indicators are putting resistance on the bullish structure.

Bitcoin dip buyers are cautiously entering the market at the lower end of the price range, waiting for the $90,000 mark to become a solid support level before committing more capital. This cautious stance reflects a broader uncertainty, with investors wary of potential downside risks despite the recent gains. The market's hesitation underscores the need for a more stable price floor to attract larger investments and sustain the upward trajectory of Bitcoin's value.