As the accumulation of coins continues, the realized cap of Bitcoin has reached a record level.
Bitcoin is currently trading at approximately $100,000 and has seen a sideways trend in recent weeks. The asset is trading at $97,005 at the time of this report, recording a slight increase of 2.6% over the past seven days and a rise of 3.3% in the last twenty-four hours.
Although volatility remains low, new on-chain data shows a steady increase in investor activity, indicating potential future price movement.
The confidence of Bitcoin investors is reflected in on-chain metrics.
Notable contributor Carmelo Aleman from CryptoQuant highlighted a continuing pattern suggesting ongoing interest from investors. Aleman noted in a recently published article on QuickTake that the realized cap of Bitcoin - which shows the total value of coins based on their latest movements - has peaked for the third consecutive time.
By calculating the output of each unspent transaction (UTXO) at its purchase price, this metric - which shows the increased capital input into the asset - has risen to $890.7 billion.
Aleman claims that both long-term and short-term Bitcoin holders are showing continuous accumulation based on their ongoing increase in realized cap.
The rise in spent Bitcoin over the past few weeks indicates that market players are positioning themselves for a potential price breakout. If the continuous investment persists, this pattern of capital flow could pave the way for a stronger bullish phase.
It seems that long-term Bitcoin holders (LTHs) and short-term Bitcoin holders (STHs) are increasing their holdings during this consolidation phase. Aleman confirmed that the growth of the realized market cap reflects market confidence, thus transcending mere price reflection.
When combined with consistent accumulation patterns, the indicator shows an increasing conviction in the long-term value of Bitcoin. If previous trends repeat, the market may be in the early stages of creating a new high.
