Bitcoin Realized Cap Indicates Fresh Capital Inflows: CryptoQuant


The realized capitalization for bitcoin has recently witnessed significant growth and increment, indicating an improvement in the liquidity conditions of the leading digital asset.

According to a report by on-chain market analytics platform CryptoQuant, bitcoin’s growing realized cap and the rising stablecoin market cap are evidence of the influx of new capital into the crypto market.

Bitcoin’s Growing Realized Cap

The realized cap is a metric that helps estimate bitcoin’s (BTC) economic weight or actual value by considering the last price at which each asset was last moved or transacted.

CryptoQuant found that bitcoin’s realized cap is growing at its fastest pace this year as new capital continues to flow into the market. The metric just turned positive for the first time since October 2022, influencing BTC’s market cap as it has over time. The rising liquidity is evident in BTC’s short-term uptrend, as the asset keeps trading above the cost basis of short-term holders.

Bitcoin Market Cap vs Realized Cap. Source: CryptoQuant

The uptick in bitcoin’s realized cap aligns with rising liquidity in Tether (USDT), which historically favors the bull market. The crypto analytics platform spotted other bullish signs, like approximately 70% of BTC’s supply staying inactive for over a year. Analysts said the findings show a majority of investors have a holding mentality.

Rising Greed Among Investors

Several other incidents have positively impacted the price of BTC recently. One such is the emergence of bitcoin proponent Javier Milei as the President-Elect of Argentina, with a voting lead of 56%. Amid Argentina’s economic instability and rising inflation, Milei has advocated the use of BTC, proposing to resolve the pressing economic situation by replacing the Argentinian Peso with the USD.

As news of Milei’s win made the rounds, BTC rallied through the $37,000 mark alongside the broader crypto market. The value of USDT in Pesos was not left out of the excitement as the stablecoin surged in reaction to the news.

Meanwhile, the BTC Fear and Greed Index shows that investors are currently in the greed zone and have been there for more than 30 consecutive days, a development not seen since Q4 2021, when the asset hit its all-time high of $68,000. The rising greed could be a sign that BTC’s price may be due for a correction as investors rush into the market due to the fear of missing out (FOMO).

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