Bitcoin enters a new phase: The realized cap of BTC has reached an all-time high of $900 billion, signaling that long-term investors are beginning to cash out. This milestone comes after a sharp price surge — and analysts say we’ve entered the “euphoria zone,” a stage often followed by higher market volatility.
🔹 Investors in Profit – MVRV Ratio Sends a Signal
According to data from Glassnode, Bitcoin’s realized cap has, for the first time ever, surpassed $900 billion. This means that investors who held BTC for months are now securing profits by reducing exposure and selling off portions of their holdings.
The MVRV ratio (Market Value to Realized Value) has entered the so-called euphoria zone, which typically indicates that investors are sitting on large unrealized gains — and are likely considering profit-taking.
For example, long-term holders like Michael Saylor, who recently purchased another 4,020 BTC, now hold coins that have, on average, tripled in value. An MVRV above 3.2 has historically signaled that the market may be nearing a local top.
Even short-term holders — those who bought BTC within the past five months — are showing gains, with an MVRV above 2.0, highlighting the widespread profitability.
🔹 Ethereum Lags, but Altcoins May Be Ready to Shine
While Bitcoin dominates the spotlight, Ethereum is trailing behind. Its price has risen modestly but lacks the explosive momentum seen in BTC. This disparity is largely due to strong institutional demand for spot Bitcoin ETFs, which continue to attract the lion’s share of attention and capital.
This phase reflects a typical cycle where markets move from sharp gains to consolidation. While current metrics don’t point to an imminent crash, they do suggest a period of increased volatility may be approaching.
🔹 Altcoins Wait in the Shadows – BTC Dominance Weakens
Renowned crypto analyst Michael Van de Poppe believes that the altcoin bull market has not yet begun. However, he notes a bearish divergence in Bitcoin’s dominance, signaling that BTC’s share of the total crypto market is gradually declining.
Historically, this has been a precursor to capital rotating into altcoins. Van de Poppe points out that previous dips in BTC dominance (often marked in red) signaled the end of bear markets, and that a similar reversal may be just around the corner.
📌 Summary: Bitcoin is hitting new highs and investors are taking profits. Ethereum remains in the background for now, but altcoins are watching closely — and if Bitcoin’s dominance keeps dropping, their time could soon arrive. The market is heating up, and so is the volatility.
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