Bitcoin has entered an exciting phase, especially with its realized cap reaching a record-breaking level as price follows the direction of the 2016 halving year.
The Realized Cap leverages Bitcoin’s purchase prices to measure its value, accurately gauging its current market strength. Amid the latest rally on the back of Donald Trump’s election victory, this metric has reached a massively bullish level, confirming the strength of the uptrend.
Bitcoin Realized Cap Claims ATH
On Nov. 5, Bitcoin’s rally gained momentum, building off U.S. election results. This rally pushed Bitcoin’s price to a new peak of $76,990, indicating a solid trend of upward movement.
Although BTC briefly corrected, it swiftly resumed its bullish trajectory, looking to mark its fourth consecutive day of gains today. This upward trend has propelled major indicators, with Bitcoin’s realized cap reaching its all-time high (ATH) of $656 billion.
According to Glassnode, the realized cap, which now reflects a 3.8% growth over the past month, shows a notable $2.5 billion in net inflows. Glassnode’s recent data confirms the importance of this figure, as this level of inflow is one of the highest since January 2023.
It bears mentioning that when realized cap grows at such a rate, it typically indicates intense buying interest and confidence in Bitcoin’s future. Essentially, investors are moving funds into Bitcoin, raising its realized cap and strengthening the overall market.
One factor contributing to this rise in realized cap is the consistent capital inflow into spot Bitcoin ETFs in the U.S. The market saw an impressive $1.37 billion inflow into these ETFs yesterday, marking the highest in history. These products now hold over 1 million BTC.
Current Bitcoin Halving Year Similar to 2016 Trend
Meanwhile, amid the recent price action, data from CryptoQuant confirms that Bitcoin’s cumulative return index in 2024 follows a pattern remarkably similar to the 2016 halving cycle.
This year’s movements, notably post-election, mirror the 2016 cycle when Bitcoin also experienced a steady climb after a temporary dip. In that halving year, Bitcoin saw a drop on the 210th day and entered a two-month consolidation phase, only to rise steadily in the third quarter.
In the 2024 cycle, Bitcoin has followed a comparable path, experiencing a slump around day 210, exactly July 29. On this day, BTC declined from $70,000 and continued to drop until it fell below $50,000 on Aug. 5 amid a crash in the U.S. stock market.
However, the recent rally on the U.S. election results has driven Bitcoin back to new heights, aligning with the 2016 cycle trajectory. The consistency between these two cycles suggests that Bitcoin could be on track to reach even greater heights before the end of the year.
Bitcoin currently trades at $76,244, representing a 7.12% gain over the past week. Peter Brandt had previously noted that Bitcoin would confirm a decisive breakout if it could close Sunday above $76,000. With two days left, the asset needs to hold above the $76K level.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
