Bitcoin’s market dynamics are signaling the possibility of a major price surge, according to new on-chain research. Analysts from the data platform CryptoQuant report that Bitcoin’s realized capitalization—an alternative measure of market cap based on the price at which each coin last moved—has reached unprecedented heights, nearing the $900 billion mark. As of May 7, the figure stood at $891 billion, setting a new all-time high.
This surge in realized cap is being interpreted as a sign of growing investor confidence. Cryptocurrency Quant contributor Carmelo Alemán noted in a recent blog post that the steady capital inflows indicate “renewed interest from investors,” and more importantly, reflect a deeper shift in market sentiment. “This new bull cycle all-time high in Realized Cap not only reflects a surge in invested capital but also a growing conviction in Bitcoin’s long-term potential as a financial asset,” Alemán said. He added that both long-term holders (LTHs) and short-term holders (STHs) have been actively accumulating Bitcoin, laying the groundwork for what could be a major price breakout.
Capital Inflows Suggest Solid Market Support
Bitcoin is now approaching the symbolic $100,000 price level, with the latest data pointing to continued strength in market fundamentals. On-chain indicators have shown that the digital asset is steadily regaining value, setting the stage for what analysts believe could be the early phase of a new bull cycle. Despite concerns over profit-taking, the overall market structure appears to remain intact.
According to research firm Glassnode, the balance between buyers and sellers remains healthy. In their latest “Week Onchain” report, Glassnode highlighted that profit-taking has accelerated in recent weeks, driven by a rally that is drawing in more than $1 billion in daily net capital inflows. “This points to initial indicators of a return of demand-side strength, allowing sellers to lock in profits, and speaking to buyers willing to pick up coins at the current market price,” the report stated.
Sustained Capital Movement Since Late 2023
Glassnode also emphasized that this influx of capital isn’t a recent development. Since October 2023, the Bitcoin market has been in what it describes as a “profit-driven regime,” with inflows consistently surpassing outflows. This persistent demand, even amid regular profit-taking, underscores the resilience of the ongoing market recovery.
The implications of these developments could be far-reaching. Analysts believe that if the current momentum continues, Bitcoin may be on the verge of breaking through the $100,000 mark for the first time. With the realized cap hitting new records and demand absorbing supply effectively, the foundations appear solid for a potentially significant price move. Whether this marks the definitive start of a new bull cycle remains to be seen, but all signs point to a market that is heating up again.
