Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin is approaching $63k as bullish momentum pushes it toward and beyond its previous all-time high of $69k. However, based on one specific metric, realized capitalization, the leading cryptocurrency has already neared a historic peak.
Analysts from blockchain data firm Glassnode reported on X yesterday that Bitcoin’s realized cap has climbed to $467.2 billion, just 0.22% short of its all-time high (ATH) of $468.3 billion recorded in mid-2022.
After a week marked by significant price movements and robust capital inflows, the #Bitcoin Realized Cap has nearly fully recovered, reaching a value of $467.2B.
This positions our current value at just -0.22% below the ATH of $468.3B. pic.twitter.com/g4N7AHebl2
— glassnode (@glassnode) February 28, 2024
This metric is also rising rapidly. On Tuesday, Glassnode’s The Week Onchain newsletter indicated Bitcoin’s realized cap at $460 billion, or 3% below its previous ATH.
Cryptonews has reached out to Glassnode to confirm whether Bitcoin has regained its former ATH in realized capitalization and will provide updates as more information becomes available.
Realized capitalization assesses Bitcoin’s market value based on the prices at which each coin last changed hands. According to Glassnode’s lead analyst James Check, this is “the one that matters.”
The #Bitcoin Realized Cap reaching ATHs is the one that matters.
This indicates the actual liquidity-adjusted capital invested, saved, and stored in $BTC is now at unprecedented levels.
You will hear me emphasizing this metric throughout the cycle. It’s the foundational metric of my #Bitcoin analysis. https://t.co/7NQP8dNVIh
— _Checkɱate
(@_Checkmatey_) February 28, 2024
This metric is valuable as it allows for a comparison with Bitcoin’s market capitalization, which reflects the total value of the asset if every coin were sold at the current market price.
This comparison yields a market value to realized value (MVRV) ratio of 2.14, indicating that the average Bitcoin holder has experienced returns of 114%.
Related Posts
Will ETFs And Halving Propel BTC To New Heights?
The two primary narratives influencing Bitcoin’s recent performance are excitement surrounding ETFs and expectations for the halving.
The ETF narrative was the central theme in the industry towards the end of last year. The prevailing thought was that if US regulators approved a Bitcoin investment product, it would lead to a substantial influx of institutional capital into Bitcoin and the broader crypto market.
This has largely materialized, with inflows reaching historic levels. However, many are questioning what will shape Bitcoin’s narrative moving forward. There must be more to it than just another Bitcoin acquisition spree by MicroStrategy CEO Michael Saylor.
Fortunately, there is the halving. The halving is a quadrennial event on the Bitcoin network governed by the underlying code of the blockchain software. On or around April 19, the Bitcoin rewards for all miners will be halved.
As miners regulate the issuance of Bitcoin, this will result in a supply constraint.
It is already evident that Bitcoin’s demand has been spurred by the introduction of exchange-traded products in the US. If demand remains steady, then economic principles suggest that high demand coupled with limited supply will lead to increased prices.
We will see. As observed in Bitcoin’s swift resurgence this week, the crypto market is highly volatile, and interest is rekindling.
The post Glassnode Data: Bitcoin Realized Capitalization Nears All-Time High Amid Market Surge appeared first on Cryptonews.
