BITCOIN’S REALIZED CAP UP, SIGNALING NEW CAPITAL DESPITE DROP BELOW $65K

Recent insights from blockchain analysis company Glassnode indicate a notable new capital infusion into Bitcoin, despite a downturn in market conditions.

Glassnode, on April 2, noted that seasoned Bitcoin holders are offloading their holdings to newer entrants at elevated rates. “This signals a significant capital inflow into Bitcoin, pushing its realized cap to unprecedented levels,” the firm stated.

The realized cap, which tracks the total USD value locked in Bitcoin, has surged, marking a new milestone.

As Bitcoin’s spot price lingers below its recent record high of $73k, holders who’ve been in the game for a long time have begun their selling phase, parting with their assets to new investors at raised prices. This movement channels fresh capital into Bitcoin, elevating its realized cap further.

Despite this, as Bitcoin neared its peak once more, a subsequent market pullback ensued. After reaching a zenith of $73,734 on March 14, Bitcoin saw a 17% retraction, stabilizing at $71,550 by March 28, only to face resistance and dip below $65,000. In recent trading sessions in Asia, Bitcoin’s price fell to $64,573, but it managed a recovery to $66,300, as per CoinGecko’s data, marking a 10% decrease from its all-time high.

Moreover, Glassnode reported a new peak in the realized cap at $540 billion, growing at an extraordinary monthly rate of over $79 billion.

By analyzing the distribution of USD wealth among different age groups of Bitcoin through the Realized Cap HODL Wave metric, Glassnode observed a significant uptick in holdings by investors who’ve been in the market for less than three months, now controlling approximately 44% of the network’s total wealth.

This transition underscores a clear change in investment strategies, with long-term holders in the midst of profit realization and reactivation of previously dormant supplies to meet the demand at higher prices.

“The increase in realized cap is attributed to older coins being appraised at higher values, buoyed by sales from both GBTC (~30%) and traditional holders,” noted Glassnode analyst ‘Checkmatey’.

In addition, sentiment analysis firm Santiment highlighted that confidence in Bitcoin’s bull market has not considerably waned, as per social media sentiment.

In broader crypto market news, the total market capitalization saw a 3% decline to $2.65 trillion, roughly 15% below its all-time high set in November 2021.

While meme coins have experienced some fluctuations, other major altcoins haven’t shown significant movement in this cycle. Currently, they are all experiencing a downturn, with Ethereum down 2% at $3,300, XRP dropping 2.5% to $0.584, and Dogecoin decreasing by 3% to $0.185.

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