The current surge in Bitcoin’s price is not just another short-lived spike — it’s backed by strong on-chain fundamentals that suggest deep market confidence. According to blockchain analytics firm Glassnode, a critical metric known as Realized Cap has reached an unprecedented all-time high, signaling sustained strength in the ongoing bull cycle.
Bitcoin (BTC) recently climbed past $109,000, briefly touching $110,000 for the first time in its history. While the price has slightly pulled back to trade around $109,686, the momentum remains intact. More importantly, the underlying data reveals that investor profitability and market liquidity are at record levels — reinforcing the idea that this rally is structurally sound.
What Is Realized Cap and Why It Matters
Realized Cap is a sophisticated on-chain metric that calculates the total value of all bitcoins based on the price at which each coin was last moved. Unlike market capitalization, which multiplies circulating supply by the current price, Realized Cap filters out "lost" or dormant coins that haven’t moved in years. This provides a more accurate picture of the network's true economic base.
Glassnode reports that Bitcoin’s Realized Cap has now crossed $900 billion for the first time ever — a historic milestone that reflects the massive accumulation of value within the network.
“Strength in the digital asset market remains robust with Bitcoin continuing to consolidate just beneath its all-time high of $109,000. The elevation in price has raised the profitability of the vast majority of market investors, with many seizing the opportunity to lock in profits. As a result, capital inflows have increased markedly, pushing the Realized Cap above $900 billion for the first time, a historic milestone that underscores the depth of liquidity in the market.”
This surge isn’t driven by speculation alone. Instead, it reflects real economic activity — long-term holders securing gains, institutions deploying capital, and retail participation increasing across global markets.
👉 Discover how market cycles influence Bitcoin’s long-term value and what’s next in this rally.
Short-Term Holders Cash In, But Market Absorbs Pressure
One of the most telling signs of a maturing bull market is how it handles profit-taking. In previous cycles, large sell-offs from short-term holders often triggered sharp corrections. However, this time around, Bitcoin is demonstrating remarkable resilience.
Glassnode defines Short-Term Holders (STHs) as entities that have held their BTC for less than 155 days. Over the past month, these investors have realized over $11.4 billion in profit — a significant amount that could have destabilized weaker markets.
Yet, despite this selling pressure, Bitcoin’s price continues to hold strong. This suggests robust demand from new buyers, including institutional funds and long-term investors stepping in to absorb supply.
The ability of the market to digest profit-taking without collapsing indicates growing maturity and deeper liquidity — both hallmarks of a healthy, sustainable rally.
MVRV Soars: Investor Confidence at Record Levels
Another powerful indicator confirming market strength is the Market Value to Realized Value (MVRV) ratio. This metric compares Bitcoin’s current market value to its Realized Cap and helps assess whether the asset is overvalued or undervalued.
A rising MVRV typically means holders are sitting on unrealized profits — boosting confidence and reducing the incentive to sell.
Since Bitcoin’s local low of approximately $74,000 in early April, the MVRV ratio has surged across both short-term and long-term holder cohorts:
- Overall MVRV: Increased from 1.74 to 2.33 — up from +74% to +133% profitability.
- STH MVRV: Jumped from 0.82 (indicating an 18% loss) to 1.13 (+13% gain).
- LTH MVRV: Rose from 2.91 to 3.30 — moving from +191% to +230% profitability.
“Profitability is up across the board, boosting confidence and supporting the rally.”
This broad-based improvement means even those who bought near recent highs are now in profit — a rare occurrence in previous cycles and a strong sign of momentum.
Why This Rally Feels Different
Several factors set this bull run apart from earlier ones:
- Institutional Adoption: With spot Bitcoin ETFs now live in multiple jurisdictions, including the U.S., institutional capital is flowing into BTC more systematically than ever before.
- Global Liquidity Conditions: Central banks are shifting toward accommodative monetary policies, increasing risk appetite and driving investors toward hard assets like Bitcoin.
- On-Chain Resilience: As shown by Realized Cap and MVRV data, the network is absorbing sell pressure efficiently — a sign of strong underlying demand.
- Retail Participation: Growing interest from retail investors through custodial platforms and payment integrations continues to expand Bitcoin’s user base.
These dynamics create a powerful feedback loop: rising prices increase confidence, which attracts more buyers, further reinforcing upward momentum.
👉 Learn how on-chain data can help predict Bitcoin’s next major move before it happens.
Frequently Asked Questions (FAQ)
What does Realized Cap tell us about Bitcoin’s health?
Realized Cap measures the aggregate cost basis of all active Bitcoin holders. When it rises significantly — especially past $900 billion — it indicates that most coins were last moved at high prices, meaning fewer holders are underwater. This reduces selling pressure and strengthens market stability.
Are we still in a bull market if Bitcoin pulls back from $110,000?
Yes. Temporary retracements are normal during strong bull markets. What matters more is on-chain behavior — such as rising Realized Cap and MVRV ratios — which confirm that investor sentiment remains positive and accumulation continues.
What happens when Short-Term Holders take profits?
Large-scale profit-taking by STHs can cause short-term volatility. However, if Long-Term Holders continue accumulating and institutional demand remains strong — as they are now — the market can absorb these sales without reversing course.
How reliable is MVRV as a market signal?
MVRV has historically been a strong predictor of tops and bottoms. A ratio above 2 often suggests overvaluation, while below 1 indicates undervaluation. Currently, while MVRV is elevated, it hasn't reached extreme levels seen in past cycle peaks (which exceeded 3.5), suggesting room for further growth.
Does high profitability increase risk of a crash?
Not necessarily. High profitability only becomes dangerous when coupled with panic selling or external shocks. Right now, on-chain data shows disciplined profit-taking rather than capitulation — a sign of market maturity.
Can Bitcoin sustain prices above $100,000?
With increasing adoption, limited supply (only 21 million BTC), and growing macroeconomic tailwinds, sustaining prices above $100,000 is increasingly plausible — especially if institutional inflows continue.
👉 See how top traders use real-time data to stay ahead of major Bitcoin price moves.
Final Thoughts: A Rally Built on Fundamentals
The current phase of Bitcoin’s rally isn’t fueled by hype alone — it’s supported by hard data. From Realized Cap crossing $900 billion to MVRV ratios climbing across all holder groups, the on-chain evidence points to a market that is healthy, confident, and structurally resilient.
While short-term volatility should be expected — especially as traders lock in gains — the broader trend remains upward. With institutional adoption accelerating and global liquidity conditions improving, Bitcoin appears well-positioned for further gains in 2025 and beyond.
For investors and observers alike, now is the time to focus not just on price charts, but on the deeper metrics that reveal where Bitcoin truly stands in this evolving financial landscape.
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