Bitcoin Realized Cap Reveals Fresh Capital Gains: CryptoQuant

The confirmed capitalization for bitcoin has recently shown significant growth and increase, which indicates the improvement of the liquidity situation of the leading digital asset.

According to a report by on-chain market analysis platform CryptoQuant, the growing amount of Bitcoin's guaranteed capital and the stable coin's market value are evidence of new capital entering the crypto market.

Bitcoin's growing realized cap

The verified cap is a metric that helps estimate the economic weight or actual value of Bitcoin (BTC) by considering the last price at which each asset was last traded.

CryptoQuant continues to see Bitcoin's perceived high rate of growth this year as new capital continues to enter the market. The metric just turned positive for the first time since October 2022, which has had an impact on the BTC market price over time. As the asset trades above the value of short-term holders, the increased liquidity is reflected in BTC's short-term upside.

The capital realized in Bitcoin correlates with increasing liquidity in Tether (USDT), which has historically supported a bull market. The crypto analytics platform noted other signs of brutality, such as 70% of the BTC supply being inactive for over a year. Analysts said the findings show that most investors have a holding mentality.

Growing greed among investors

A number of other events have recently had a positive impact on the price of BTC. One of them is the emergence of Javier Millay, who is a supporter of bitcoin, as the president-elect of Argentina, leading with 56% of the vote. In Argentina's economic instability and rising inflation, Milley advocated the use of BTC and proposed replacing the Argentine peso with USD to solve the urgent economic situation.

As news of Miley's win made the rounds, BTC hit the $37,000 mark alongside the broader crypto market. The USDT price in pesos was not left out of the fun as the stablecoin reacted to the news.

Meanwhile, the BTC Fear and Greed Index shows that investors are currently in the greed zone and have stayed for more than 30 consecutive days, a development not seen since Q4 2021, when the asset hit a high of $68,000. The increasing greed could be a sign that the BTC price may be due for a correction as investors enter the market out of fear of missing out (FOMO).