Bitcoin’s Realized Cap Breaks All-Time High for 3rd Straight Week: Investors Double Down

Bitcoin’s Realized Capitalization or (Realized Cap) reached a record high of $890.74 billion on May 7, 2025. This sums up all the Bitcoins and provides a real picture of capital movements by using the last moved price instead of the market cap of Bitcoin.

What is Realized Cap and Why is It Important

Realized Cap is calculated by using the formula

Realized Cap = Σ (UTXO Purchase Price x Amount of BTC)

This metric is not based on current values of coins, but rather the price when each coin was bought, thus reducing the noise from loss or non-circulating coins. An increase in the Realized Cap means that there is more capital flowing into the market, which is a positive sign that more investors are investing in Bitcoin and have the confidence that the cryptocurrency will perform well in the long run.

Investor Accumulation Signals Market Strength

This rise in Bitcoin realized cap is due to the continuation of the purchase of the digital asset by both long-term investors, such as miners, and short-term traders. In the past month of trading, there has been a steady accumulation of positions by both the retail and institutional investors, presumably awaiting a trigger for a higher breakout.

The Realized Cap rose to indicate that capital is still flowing into Bitcoin, regardless of some recent sideways consolidation. This refers to powerful players building up their position in the background during a slow-moving environment.

Technical Chart Analysis: What the Data Shows

It can also be seen that the trend on the CryptoQuant chart of Realized Cap (blue line) has been consistently rising steadily and has recently started increasing more intensely toward the end of April. In the same period, the price line (white) showed a similar movement, declining and rising to the highest point on May 7, which was Realized Cap.

Carmelo Aleman pointed out the relation between the price recovery and the increase in Realized Cap as a key indicator. In his opinion, this alignment is characteristic of early primary bulls when the floor price rises, powered by investment buoyancy and not via margin and pumping.

Early Signs of a New Bull Cycle?

The market sentiment is growing more and more bullish since Bitcoin’s Realized Cap keeps posting record highs. Such an accumulation has often characterized the periods preceding rallies, even more so when the accumulation occurred organically and not through speculative activities.

If this flow remains in that direction, then it could be the start of another bullish run for Bitcoin. They are strongly anticipating that if the current holders consolidate, then there will be a much sharper move in price during the next few weeks.