Bitcoin’s Realized Capitalization Hits New High, Reflecting Strong Investor Confidence
Bitcoin (BTC) is approaching its all-time high, with on-chain data revealing that the total investment in the asset has already reached its historical peak.
Glassnode reports a surge in Bitcoin’s “realized capitalization” to $467.2 billion, just $500 million away from its April 2022 high. Realized cap, reflecting the total value of Bitcoin based on the time and price of the last coin movement, indicates a new high for true liquidity-adjusted capital in BTC. Glassnode’s market value to realized value (MVRV) ratio stands at 2.14, signifying an average investor’s unrealized profits of 114%.
IntoTheBlock supports this with an MVRV ratio of 2.22, indicating 97% of Bitcoin investors in profit. Despite Bitcoin’s recent surge to $63,500, analysts believe there is room for growth before the next cyclical top. While historical MVRV peaks were around 4, the current cycle indicates a decline. Despite retail participation appearing dormant based on stable new network addresses, Bloomberg ETF analyst Eric Balchunas suggests a potential uptick with the recent launch of Bitcoin ETFs, noting significant retail activity even before options trading and availability on advisory platforms.
Clever Robot News Desk 1st March 2024
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