Bitcoin’s (BTC) realized market cap has hit a record-breaking milestone of $872 billion according to recent data from Glassnode. However, the analytics provider indicates that investors are currently showing a lukewarm response to the present BTC price range.
In a recent report, Glassnode highlighted that although the realized cap has reached a new peak, the monthly growth rate for this metric has slumped to just 0.9% month on month. This signifies a conservative sentiment in the market. The realized cap serves as a reflection of the total value of all Bitcoin at the price they were last traded, thus offering a glimpse into Bitcoin’s economic activity. The slowing growth rate underlines a positive yet diminishing capital inflow, possibly hinting at fewer new investors or less activity from existing ones.
In addition to this, Glassnode’s realized profit and loss graph demonstrated a drastic 40% drop, indicating significant profit-taking or loss realization. The analytics firm explained this as a sign of a potential slowdown in investor activity, often leading to a consolidation phase as the market seeks a new balance.
While newcomers may be waiting in the wings, it appears existing investors are adopting a cautious stance due to the current short-term holder’s realized price. Data from CryptoQuant suggests that the short-term realized price stands at $91,600. With BTC presently hovering below this mark, it suggests short-term holders are in a loss, potentially leading to increased selling pressure if they choose to cut their losses.
Furthermore, Bitcoin’s short-term holder market value to realized value has stayed below 1, a figure traditionally associated with buying opportunities. This further substantiates that short-term holders are operating at a loss.
Data reveals a split in sentiment between US and Korean Bitcoin traders. The Coinbase premium, reflecting US trading, recently surged, indicating robust US demand and potential Bitcoin price increases. In contrast, the Kimchi premium index dipped during the correction, suggesting a dip in retail engagement amongst Korean traders.
This uneven demand is reflected in Bitcoin’s recent price fluctuation, with the cryptocurrency’s price swinging between a narrow range of $85,440-$82,750 since April 11. On the 4-hour chart, BTC has managed to maintain the support of the 50-day, 100-day, and 200-day moving averages. However, on the 1-day chart, these indicators are posing resistance to the bullish structure.
This article is not intended as investment advice or recommendations. All trading and investment moves carry risk, and readers should conduct their own research before making a decision.
