The latest rally sending Bitcoin (BTC) to new all-time highs is showing a lot of strength as one key metric reaches unprecedented levels, according to the digital asset analytics firm Glassnode.
Glassnode says that Bitcoin’s Realized Cap, which records the price at which each coin was last moved and aims to gauge how many holders are in profit or at a loss, is hitting a new all-time high.
“Strength in the digital asset market remains robust with Bitcoin continuing to consolidate just beneath its all-time high of $109,000. The elevation in price has raised the profitability of the vast majority of market investors, with many seizing the opportunity to lock in profits. As a result, capital inflows have increased markedly, pushing the Realized Cap above $900 billion for the first time, a historic milestone that underscores the depth of liquidity in the market.”
Glassnode also says that Short-Term Holders (STHs), those entities that have held their coins for less than 155 days, have sold at massive profits in the last month, while Bitcoin is absorbing the selling pressure.
“For the Short-Term Holders, the improvement in their portfolio values has directly translated into a notable increase in spending activity, with the cohort realizing over $11.4 billion of profit across the last month.”
Glassnode reports on the social media platform X that ever since Bitcoin plummeted to a local low of around $74,000 in early April, the market value to realized value (MVRV) metric – which gauges the market’s sentiment and valuation of a crypto asset – has soared for both STHs and Long-Term Holders (LTHs).
A rising MVRV means “holders are sitting on more unrealized profit – boosting confidence and reducing sell pressure,” according to the analytics firm.
“Since the $74,000 low:
- MVRV: 1.74 to 2.33 (+74% to +133%).
- STH MVRV: 0.82 to 1.13 (from -18% loss to +13% gain).
- LTH MVRV: 2.91 to 3.30 (+191% to +230%).
Profitability is up across the board, boosting confidence and supporting the rally.”
Bitcoin printed a new all-time high Wednesday, briefly breaking past $110,000 for the first time in its history.
The top crypto asset has since retraced, trading for $109,686 at time of writing, up 2.6% in the last 24 hours.
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