Comprehensive Analysis of Bitcoin Inflows and Realized Cap Growth
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Understanding Bitcoin’s Realized Cap: A Detailed Insight
In a recent analysis by Glassnode, the Realized Cap of Bitcoin has been a focal point. This metric assesses the total value of Bitcoin by considering the last transacted price of each token on the blockchain. Essentially, the Realized Cap aggregates the cost basis of the entire circulating Bitcoin supply, reflecting the total capital investors have utilized to acquire Bitcoin. This differs from the traditional market cap, which represents the current value held by investors.
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Bitcoin’s Realized Cap Growth: A Comparison Across Cycles
Since the commencement of the current cycle in November 2022, the Realized Cap has experienced significant growth through three notable waves, indicating substantial capital inflow into Bitcoin. This metric has now reached an unprecedented $1.06 trillion. But how does this compare to previous cycles?
Glassnode’s findings reveal that $678 billion in capital has entered Bitcoin during this cycle alone. This figure is 1.8 times greater than the $383 billion observed from 2018 to 2022. While previous cycles saw significant leaps — $4.2 billion from 2011 to 2015 and $85 billion from 2015 to 2018 — the current cycle’s magnitude is remarkable.
Analyzing the Realized Profit/Loss Ratio
Another key metric in this cycle is the Realized Profit/Loss Ratio, which compares the volume of Bitcoin transacted at a profit versus a loss. Unlike previous cycles characterized by singular prolonged peaks, this cycle has seen three distinct extreme peaks. Glassnode suggests that after the recent peak, a cooling phase may be imminent.
Current Bitcoin Price Trends
Recently, Bitcoin’s price has experienced a deeper drawdown, currently hovering around the $109,300 mark. This fluctuation comes after observing the trend over the past several days.
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