Bitcoin's Realized Market Cap Surges to $857 Billion, Long-Term Holders Boost Confidence

Bitcoin's realized market capitalization has reached a staggering $857 billion, indicating a strong confidence from long-term holders and a decrease in selling pressure. This significant milestone suggests that the cryptocurrency's price may continue to grow before reaching its market peak.

The percentage of long-term holders has increased to 39.74%, further supporting the notion that there is substantial potential for price growth before the market peak is reached. Currently, Bitcoin is trading at $96,834, nearing the crucial $100,000 milestone. However, the risk of profit-taking may threaten to draw it back below key support levels.

Analysts, such as CryptoQuant's pseudonymous analyst MAC_D, have noted that the Bitcoin bull cycle remains intact. This assertion is based on an analysis of Bitcoin's realized market capitalization and the increasing share held by long-term holders (LTHs). The realized market capitalization, which calculates the total value based on the price at which the coins last changed hands, has surged to an astonishing $857 billion. This increase highlights the value maintained by long-term investors and the actual acquisition cost of the circulating coins.

When the realized market cap of BTC advances, it generally indicates that long-term investors are accumulating more of the asset. Additionally, the coins changing hands occur at higher price levels, reinforcing market confidence in Bitcoin's future valuation. An increase in the amount held at elevated prices can alleviate selling pressure from long-term holders, who are less likely to sell unless the market exceeds their purchase price. This trend may reduce downward pressure and pave the way for upward movements in the near term.

Significantly, the rise in the share held by long-term holders reinforces this narrative. At the previous cycle's price peak, their ratio stood at 15.66%, while now it has escalated to 39.74%. This strongly suggests that the market has not reached its peak yet, particularly when compared to the previous cycle's metrics.

This increase indicates that a considerable portion of the Bitcoin supply is retained by long-term investors. Given that the preceding cycle's high occurred with a significantly lower ratio, the current levels imply that there is substantial room for further price appreciation before reaching a new cycle peak.

At present, Bitcoin trades at $96,834, remaining securely above the support level