Bitcoin realized cap hits $850 billion, establishing it as a global macro asset

Bitcoin (BTC) has absorbed approximately $450 billion in additional capital since November 2022, bringing the total Realized Cap to $850 billion, according to a recent report by Glassnode.

The report noted that Bitcoin has maintained a price above $100,000 for several weeks, seven years after reaching $10,000 during the 2017 bull run.

According to Glassnode, the growth in Bitcoin’s realized cap is driven by its increasing role on the global stage, which has attracted institutions and sovereign entities.

The report highlighted nation-states engaging with Bitcoin as a key factor, including Bhutan engaging in large-scale mining operations, El Salvador establishing Bitcoin as a legal tender, and the US considering its potential as a strategic reserve asset.

Despite ongoing debate over its intrinsic value and utility, Bitcoin has become one of the largest global assets. With a market capitalization of $2 trillion, it has surpassed silver’s $1.8 trillion, Saudi Aramco’s $1.8 trillion, and Meta’s $1.7 trillion market caps.

As Bitcoin’s valuation increases, larger capital inflows are required to sustain its market growth. The Realized Cap metric, which tracks the cumulative net capital inflow, highlights Bitcoin’s growth.

Bitcoin also functions as a decentralized payment network. Over the past year, the Bitcoin network has processed an average of $8.7 billion daily in adjusted economic transactions, totaling $3.2 trillion in transaction volume.

These metrics challenge the assertion that Bitcoin lacks value and utility.

Demand is still lackluster

Since the collapse of FTX in November 2022, Bitcoin’s dominance within the digital asset ecosystem has increased, rising from 38% to 59%.

Bitcoin’s market capitalization has increased 5.3x from $363 billion to $1.93 trillion, whereas the altcoin market has expanded 4.7x from $190 billion to $892 billion. Despite the high correlation between Bitcoin and altcoins, BTC has attracted a disproportionately larger share of new capital.

Additionally, institutional investors have preferred Bitcoin, which is facilitated

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Author: Gino Matos

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