MAC_D
BTC Realized Cap Increase, Bull Cycle Continues
Despite a recent temporary drop in Bitcoin price, the realized market capitalization has increased. This suggests that the Bitcoin market's bull cycle is not yet over. Realized market capitalization is a metric that calculates the total value based on the price at which each Bitcoin last moved. This figure has recently surpassed $857 billion, reaching an all-time high despite price corrections. This phenomenon occurs due to long-term investors selling and new investors entering the market. Long-term holders who have held Bitcoin for over six months bought at lower prices than current levels. When they sell on the On-Chain after price increases, the realized market cap rises. New investors absorb this selling pressure by purchasing these coins. Selling by long-term investors is a natural occurrence during a bull phase, and the percentage of long-term holders can indicate cycle peaks. At the previous cycle's price peak, their proportion was 15.66%, while it currently stands at 39.74%. This suggests that the market likely hasn't reached its peak yet, considering the previous cycle's ratio. The increase in realized market cap and the decrease in long-term holder ratio indicate that the market is still in a bull cycle. However, investors should also consider macroeconomic factors such as trade tensions and inflation. While these factors may lead to short-term corrections and periods of price stability, the long-term upward trend is expected to persist.