On-chain data shows the Bitcoin Realized Cap has set a new all-time high (ATH) with the latest rally in the cryptocurrency’s price.

Bitcoin Realized Cap Has Just Achieved A New High

As CryptoQuant founder and CEO Ki Young Ju explained in a post on X, the Bitcoin Realized Cap has set a new record. The “Realized Cap” is an indicator that, in simple terms, tells us about the total amount of investment that the investors have put into the cryptocurrency.

This capitalization model is different from the usual market cap, which calculates the asset’s total valuation by equating each coin’s price in the circulating price to the current spot value.

The Realized Cap instead sets the value of each coin to be the same as the spot price at the time of its last movement. The logic behind this is that the last transfer was probably the last time the coin changed hands, and so the price at its time would be its current cost basis.

Thus, the sum of the cost basis for the entire supply would correspond to an estimate of the capital the holders used to purchase Bitcoin.

Now, here is a chart that shows the trend in the Bitcoin Realized Cap over the past few years:

The value of the metric seems to have been heading up for a while now | Source: CryptoQuant

As displayed in the above graph, the Bitcoin Realized Cap has naturally shot up alongside the latest rally in the asset, as buying and selling at higher and higher prices has been occurring.

The metric has now broken through the previous all-time high and has set a fresh record. This suggests that BTC currently has more capital locked in than ever before.

Speaking of buying, as analyst James Van Straten has pointed out in an X
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Author: Keshav Verma

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