Bitcoin (BTC) Realized Cap Beats Records, Eyes $900B as Market Lays Foundations for Breakout

Key points:

Bitcoin’s realized cap is beating records and has almost reached the $900 billion mark.

The market is laying the foundations for a “potentially significant price breakout,” new analysis says.

Profit-taking is not hindering the overall bull market rebound.

Bitcoin (BTC) is setting new all-time highs in network value as BTC price action eyes a return to six figures.

Now, data from onchain analytics platform CryptoQuant confirms another series of record highs — this time, for Bitcoin’s realized cap.

Bitcoin realized cap reflects ‘growing conviction’

Bitcoin is worth more than ever in U.S. dollar terms if its market cap is measured by the value at which the extant supply last moved onchain.

Known as realized cap, this figure has seen continued all-time highs since mid-April as BTC/USD stages a sustained recovery, and as of May 7 stood at $891 billion.

“Bitcoin has experienced a steady flow of capital inflows in recent weeks, reflecting renewed interest from investors,” CryptoQuant contributor Carmelo Alemán said in one of its “Quicktake” blog posts on May 7.

Alemán argued that the realized cap uptrend reflects a long-term market shift across the Bitcoin investor spectrum.

“This new all-time high in Realized Cap not only reflects a surge in invested capital but also a growing conviction in Bitcoin’s long-term potential as a financial asset,” the post concluded.

BTC capital influx ongoing since 2023

As previously reported by Cointelegraph, concerns remain over the fate of the current market rebound.

Despite hitting 14-month highs, sustained capital outflows from BTC wallets have accompanied the latest leg of the bull market.

These stimii generate misgivings over the profit-taking activities of LTH and STH entities, which have seen them capitalize on an avg of $1 billion per day.

In the latest edition of its regular newsletter, “The Week Onchain,” research firm Glassnode argues that buy and sell-side conditions are balanced at around $100,000.

“A surge in profit taking can be observed in recent weeks, with the recent rally drawing in over $1B/day in net capital inflows,” it wrote.

Glassnode added that the quest for profits has, in fact, extended for over 18 months.

“Notably, the market has sustained a profit-driven regime since October 2023, with capital inflows consistently exceeding outflows. This steady influx of fresh capital serves as an overall constructive signal.”