Prominent on-chain analytics firm Glassnode believes that Bitcoin (BTC) has more room to run to the upside based on one on-chain indicator.
On the social media platform X, the analytics firm points to BTC’s Realized Cap, which records the price at which each coin was last moved and aims to gauge how many holders are in profit or at a loss.
Says Glassnode,
“Realized Cap tracks net capital inflows into Bitcoin, a key driver of bull markets. So far, it has grown 2.1x from the 2022 low – below the 5.7x peak of the last cycle. The typical euphoric phase sees a sharp acceleration, but this hasn’t fully materialized yet.”
Glassnode also notes that Bitcoin’s current cycle appears to be following in the footsteps of its 2015-2018 bull run, which was largely driven by spot market investors.
“Despite a much larger market cap, pullbacks have rarely exceeded -25%, reflecting strong demand, ETF (exchange-traded fund) inflows, and Bitcoin’s role as a macro asset.”
The analytics firm says when new demand materializes, price action tends to accelerate in a “second euphoric phase.”
“Prior cycles saw explosive growth, though a 100x rally from the low – like in 2015 – is unlikely at today’s scale. If demand strengthens, there may still be room for further expansion.”
BTC is trading at $101,807 at time of writing. The top-ranked crypto asset by market cap is down more than 3.5% in the past 24 hours.
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