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Analyst: This rally stems from exhausted selling pressure rather than new capital inflows, but related indicators still suggest that the market is in the early stages of a bull market
BlockBeats reports,October 28, crypto market analyst Crypto Mommy cited CryptoQuant data indicating that Bitcoin’s Realized Cap has resumed an upward trend after undergoing a correction lasting several months. The data shows that the indicator has risen from 1057000000000 USD to 1088000000000 USD, an increase of approximately 31000000000 USD(a gain of 2.9%). The analyst believes this is generally a positive sign, as a recovery in the indicator has historically marked the early stages of bull market cycles.
Realized Cap estimates the network’s overall cost basis by calculating the price at which each Bitcoin last moved on-chain. An increase in this indicator typically represents an inflow of new capital. However, the analyst also stated that during the recent period, Bitcoin’s price rose from 69000 USD to 80000 USD, a gain of as much as 16%, far outpacing the growth rate of its cost basis at 2.9%. This divergence suggests that the recent price increase was driven more by existing holders’ reluctance to sell than by large-scale inflows of new external capital.
The analyst also warned that an increase in Realized Cap cannot serve as an absolute guarantee that prices will rise. At the market top at the end of 2025 year, the indicator also rose alongside profit-taking by long-term holders. To confirm whether the market is entering a healthier phase, the analyst recommends that investors focus on key signals going forward: first, whether Realized Cap can continue expanding; and second, whether Bitcoin can successfully hold its recent gains as capital flows in.
Original link https://m.theblockbeats.info/flash/374145