Understanding Bitcoin’s Realized Capitalization Surge

In a remarkable development, Bitcoin (BTC) has achieved a new peak in its realized capitalization, breaking its previous records for the fourth week in a row. This surge is accompanied by a notable increase in BTC holdings by both whales and spot exchange-traded funds (ETFs), signaling a rise in investor confidence in this leading cryptocurrency.

Bitcoin’s Realized Capitalization Achieves New Heights

According to recent insights from CryptoQuant, Bitcoin’s realized capitalization has now exceeded $906 billion as of May 18, 2025. This achievement marks four consecutive weeks of setting new records for this critical on-chain metric, reflecting the growing trust and investment in Bitcoin.

For those new to this concept, realized capitalization calculates the total value of all Bitcoin in circulation based on the price at which each coin was last transacted, rather than the current market price. This approach provides a more accurate picture of genuine capital inflow by excluding dormant or lost coins.

CryptoQuant contributor Carmelo_Aleman highlights that Bitcoin has been consolidating near a daily resistance level of $104,731 over the past ten days. During this period, Bitcoin has continued to amass capital, potentially setting the stage for a significant breakout. Should Bitcoin manage to surpass this resistance, the next target could be $107,757, paving the way for a potential new all-time high.

Investment Momentum: A Closer Look

Since the start of this consolidation phase on May 8, the total value of all unspent transaction outputs (UTXOs) has risen from $891,642,358 to $906,041,936, marking a 1.61% increase in realized capitalization. Notably, wallets holding between 100 and 1,000 BTC have seen the most significant accumulation, with their collective holdings rising from 5.56 million BTC to 5.68 million BTC, a 2.20% gain.

Among ETFs, BlackRock’s IBIT spot ETF stands out by increasing its BTC exposure, with holdings growing from 621,600 BTC to 631,902 BTC, reflecting a 1.66% increase. In contrast, most other ETFs have either maintained their positions or taken profits.

Future Prospects: Could Bitcoin Reach $120,000?

As Bitcoin hovers just 5.1% shy of its all-time high, there is growing speculation about its potential upside. Some analysts, referencing the Wyckoff Accumulation pattern, suggest that Bitcoin could reach approximately $120,000 in this market cycle.

Adding weight to this optimistic outlook, nearly 100,000 BTC has been withdrawn from exchanges over the past three weeks. This activity is often indicative of long-term accumulation and a decrease in selling pressure, further supporting the bullish sentiment. Currently, Bitcoin is trading at $103,450, having experienced a minor 1.2% dip in the last 24 hours.