Bitcoin Returns Above $100,000 As Monthly Inflows Hit $80 Billion

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As an analyst with over two decades of experience in the financial markets, I find the current state of Bitcoin incredibly intriguing. The surge above $100,000 and the rapid inflow of capital into the asset, as evidenced by the Realized Cap crossing the $768 billion mark, is a testament to the growing maturity and acceptance of cryptocurrencies in the global financial landscape.

Bitcoin surpassed the $100,000 threshold again, with on-chain indicators suggesting that investment in the digital currency is increasing swiftly.

Bitcoin Realized Cap Has Crossed The $768 Billion Milestone

In a recent update on platform X, Ki Young Ju – founder and CEO of CryptoQuant – has delved into the current developments surrounding the Realized Capitalization of Bitcoin. The “Realized Capital” term here denotes an on-chain valuation methodology that estimates the total worth of Bitcoin by presuming each token’s value is equivalent to the price at which its last transaction occurred within the network.

Previously exchanged coins typically represent the last place where they were traded, implying that their price at that moment can be viewed as their current cost base.

Because the Realized Cap aggregates the value for every circulating token, it effectively computes the total cost basis of all Bitcoins in circulation. Put another way, this model quantifies the overall investment capital contributed by Bitcoin investors collectively.

Here’s a graph provided by Young Ju illustrating the evolution of the indicator’s value throughout the lifespan of the digital asset:

In my analysis of the provided chart, I’ve noticed an impressive upward trajectory for Bitcoin’s Realized Capitalization over the past year. This trend implies that substantial amounts of capital have been swiftly flowing into this digital currency.

As a crypto investor, I’ve observed an interesting trend: Bitcoin is drawing in approximately $80 billion monthly, according to the founder of CryptoQuant. Remarkably, about half of the total capital that’s flowed into the Bitcoin market over the past fifteen years has been accumulated this year alone.

Due to such substantial increases in investments, the Bitcoin total investment is nearly touching the $769 billion mark. It’s uncertain how much longer the Realized Capitalization can maintain this steep upward trend, but at the moment, it appears that there remains a strong interest in this asset.

According to their recent update, Glassnode has also explored a different perspective regarding the metric they’ve been tracking.

The graph you see presents accumulated figures for both “Bitcoin Realized Gain” and “Bitcoin Realized Loss.” As their titles suggest, these statistics quantify the total profits and losses that investors have been realizing by selling their Bitcoin holdings.

Throughout the evolution of cryptocurrencies, I’ve noticed a significant disparity in the gap between the initial investment cost and final sale price for profitable transactions, amounting to approximately $1.27 trillion. Conversely, for transactions that didn’t pan out as planned, or ‘underwater transfers’, this difference stands at roughly $592 billion.

The difference between these two metrics roughly comes out equal to the Realized Cap of Bitcoin.

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2024-12-13 10:16