Bitcoin (BTC) Has More Room to Run Based on This On-Chain Indicator, Analytics Firm Glassnode Believes

Prominent on-chain analytics firm Glassnode believes that Bitcoin (BTC) has more room to run to the upside based on one on-chain indicator.

Prominent on-chain analytics firm Glassnode is keeping a close watch on one particular on-chain indicator, which they say could propel Bitcoin (BTC) further into the green.

Via the social media platform X, the analytics firm highlights BTC’s Realized Cap, which logs the price at which each coin was last moved and aims to gauge how many holders are in profit or at a loss.

“Realized Cap tracks net capital inflows into Bitcoin, a key driver of bull markets. So far, it has grown 2.1x from the 2022 low – below the 5.7x peak of the last cycle. The typical euphoric phase sees a sharp acceleration, but this hasn’t fully materialized yet.”

Glassnode also points out that Bitcoin’s current cycle seems to be mirroring its 2015-2018 bull cycle, which was largely driven by spot market buyers.

“Despite a much larger market cap, pullbacks have rarely exceeded -25%, reflecting strong demand, ETF (exchange-traded fund) inflows, and Bitcoin’s role as a macro asset.”

According to the analytics firm, when new demand comes into the picture, price action tends to accelerate in a “second euphoric phase.”

“Prior cycles saw explosive growth, though a 100x rally from the low – like in 2015 – is unlikely at today’s scale. If demand strengthens, there may still be room for further expansion.”

BTC is trading at $101,807 at press time. The number one crypto asset by market cap is down over 3.5% in the past 24 hours.

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