Bitcoin’s realized market capitalization exceeded $1 trillion as its price reached a new all-time high above $123,000.

Bitcoin has achieved a significant milestone, with its realized capitalization exceeding the $1 trillion threshold for the first time, as reported by on-chain analytics company Glassnode.

This increase follows closely after BTC‘s spot price reached a new all-time high above $123,000, highlighting the strong demand from investors in recent times.

In contrast to traditional market capitalization, realized cap assesses the value of Bitcoin based on the price at which each coin last moved on-chain. This method provides a more accurate representation of the actual capital held within the network and is widely considered a more reliable gauge of investor confidence.

Bitcoin Realized Cap (Source: Glassnode)

James Check, an on-chain analyst at Checkonchain, emphasized the significance of this metric, referring to it as the “most important Bitcoin market metric.”

He elaborated:

“[The metric] values every coin at the price when it last transacted onchain. If you DCA’d 0.1 BTC back at a $10,000 price, it will be recorded at 0.1x$10,000 = $1,000, regardless of the spot price. When it transacts again, it will be revalued, capturing capital flows in or out of the asset. What this metric indicates is that Bitcoin holders have ‘saved’ $1 Trillion in actual capital in Bitcoin.”

Additionally, Glassnode disclosed that 25% of Bitcoin’s realized cap was added this year. The firm attributes this to the increasing influx of capital into the asset amid broader macroeconomic and institutional interest.

Bitcoin price encounters resistance

In light of this milestone, market analysts have warned that BTC needs to break through a crucial resistance level at $123,370 before aiming for new highs.

Joao Wedson, CEO of blockchain analytics firm Alphractal, cautioned that BTC’s recent rejection at this second “Alpha Price” level serves as a short-term warning sign.

The Alpha Price is a dynamic on-chain model that integrates realized price, historical average cap, and other elements to predict potential resistance and support areas.

Bitcoin Alpha Price (Source: Alphractal)

Wedson stated:

“[Alpha Price] functions similarly to pressure zones: lower levels typically serve as strong support, while upper levels often indicate heightened selling pressure—especially when the majority of wallets are significantly profitable. These thresholds reflect changes in investor sentiment and can determine where buyers and sellers are likely to respond.”

Nevertheless, if BTC manages to surpass the resistance at $123,370, Alphractal predicts the next significant target will be between $143,000 and $146,000.

However, the potential risk of an overheated derivatives market looms ahead.

According to Alphractal, long positions, or traders anticipating further price increases, have been prevalent in recent months.

While this indicates bullish sentiment, it also raises the risk of a sudden “Long Squeeze,” a scenario where declining prices liquidate overleveraged longs and could intensify downward pressure on the market.

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