Bitcoin Market Update: Realised Cap Achieves New High Amid Investor Caution

Bitcoin’s realised market cap hits a new high of $872 billion but indicates a risk-off sentiment among investors with a monthly growth rate of 0.9%. Profit-taking reflects a saturated market activity, indicating potential consolidation. US demand rises while Korean trading values drop, leading to price oscillation within a limited range. Current conditions suggest caution from both new and short-term investors.

Bitcoin’s (BTC) realised market cap has reached a record high of $872 billion, yet data from Glassnode shows a lack of investor enthusiasm at current price levels. The monthly growth rate of this metric has declined to 0.9%, indicating a risk-off sentiment among market participants. The realised cap, which measures Bitcoin’s total value based on the price at which it last moved, provides insights into its economic activity; a slowing growth rate suggests reduced capital inflow, implying fewer new investors are entering the market.

Moreover, Glassnode’s realised profit and loss chart reveals a sharp 40% decline, signalling heightened profit-taking or loss realisation amongst investors. This data informs us that investor activity may be saturated, often marking a prelude to a consolidation phase where the market seeks a new equilibrium. As new investors remain cautious, existing investors are likely to adopt a risk-averse stance, especially given the short-term holder’s realised price of $91,600. With BTC presently below this threshold, short-term holders might experience increased selling pressure should they opt to sell off and mitigate losses.

Additionally, Bitcoin’s short-term holder market value to realised value ratio sits below 1, a level historically linked to buying opportunities, further indicating short-term holders are currently at a loss. This trend could impede market recovery until conditions improve.

Surveying the broader market sentiments, data indicates a divide among Bitcoin traders between the US and South Korea. The Coinbase premium, which tracks US trading demand, has recently surged, suggesting robust demand, while the Kimchi premium index witnessed a decline, reflecting diminished retail activity among Korean traders. This disparity is evident in Bitcoin’s current price behaviour, with values moving within a tight range of $85,440 to $82,750 since April 11. Although Bitcoin has maintained support from the 50-day, 100-day, and 200-day moving averages on the 4-hour chart, these same indicators are acting as resistance on the 1-day chart, complicating bullish momentum.