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Bitcoin has set a new all-time high (ATH) above $112,000, and if on-chain data is to go by, there is some real conviction behind the move.

Bitcoin Realized Cap Shows ATH Breakout Not Just Speculative

In a new post on X, the on-chain analytics firm Glassnode has talked about the latest trend in the “Realized Cap” of Bitcoin. The Realized Cap is a capitalization model that calculates the asset’s total value by assuming that the ‘true’ value of each coin in circulation is equal to the price at which it was last transacted on the network.

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This is different from the methodology that the usual market cap employs, where all tokens part of the supply are assigned the same value: the current Bitcoin spot price.

The last transaction of any token is likely to represent the last time that it changed hands on the network, so the price at that time could be considered as its current cost basis. Since the Realized Cap sums up this value for all coins, its value essentially represents a net cost basis for the entire supply.

In other words, the model can be looked at as a measure of the amount of capital that the investors as a whole have put into the cryptocurrency. In contrast, the market cap is the value that the holders are carrying in the present.

During the past day, the Bitcoin market cap saw a surge as the spot price set a new record. But what about the Realized Cap? “Unlike market cap, Realized Cap reflects actual capital inflows – only rising when coins move at higher prices,” notes the analytics firm.

Here is the chart shared by Glassnode, showing whether or not real capital inflows occurred for Bitcoin with this rally:

As displayed in the above graph, the Bitcoin Realized Cap has been following an upward trajectory for a while now, suggesting capital inflows have been coming into the asset. With the latest price surge, too, the metric has seen a leg up, corresponding to a whopping $4.4 billion flowing into the coin.

“The $4.4B jump as $BTC broke a new ATH above $112K confirms real conviction behind the move, not just speculative markup,” explains the analytics firm.

In some other news, the Bitcoin Market Value to Realized Value (MVRV) Ratio is currently sitting around the 2.25 mark, as CryptoQuant author Axel Adler Jr has pointed out in an X post.

Bitcoin MVRV Ratio — The trend in the BTC MVRV Ratio over the years | Source: @AxelAdlerJr on X

The MVRV Ratio measures the ratio between the Bitcoin market cap and Realized Cap. From the chart, it’s visible that BTC encountered resistance the last few times the metric hit a value around 2.75.