Bitcoin (BTC) is enjoying a robust rally, with a key metric reaching an all-time high, according to cryptocurrency analytics firm Glassnode.
Realized Cap Reaches New Heights
Glassnode reports that Bitcoin’s Realized Cap—the price at which each coin last moved, indicating overall investor profitability—has hit a record high, exceeding $900 billion for the first time. This signifies significant market liquidity and widespread investor profit. The increase in price has boosted the profitability of most investors, leading to increased capital inflows.
Short-Term Holders Cashing In
Short-Term Holders (STHs), those holding Bitcoin for less than 155 days, have seen massive profits and have been selling, yet Bitcoin is absorbing this selling pressure. STHs realized over $11.4 billion in profit last month.
Market Sentiment Soars
Since Bitcoin’s dip to around $74,000 in early April, the Market Value to Realized Value (MVRV) metric—a gauge of market sentiment—has skyrocketed for both STHs and Long-Term Holders (LTHs). A rising MVRV indicates increased unrealized profits, boosting investor confidence and reducing selling pressure. The increases are substantial:
- Overall MVRV: Increased by 74% to 133%
- STH MVRV: Moved from an 18% loss to a 13% gain.
- LTH MVRV: Increased by 191% to 230%
This widespread profitability is fueling the current rally.
Bitcoin Hits New All-Time High
Bitcoin briefly surpassed $110,000 for the first time ever on Wednesday, though it has since slightly retraced. At the time of writing, it’s trading around $109,686, up 2.6% in the last 24 hours.
