Realized Cap is the metric that counts each coin (UTXO) when it was last traded on the network during hand movements they are revalued where a cost base is created. We obtain insights into whether there is an inflow or outflow of net capital.
Today, the Realized Cap is at $461B, an increase of $3B or 0.66%, demonstrating the low movement and net capital inflow. We will then be able to understand through the points of the tree inflection points what situation all this capital is in.
1- Market tops, the Ralized Cap stops rising and this is where there is stabilization the capital trend rotates from profit to loss.
2- Recovery from the bear market, where HODL determines the market floor and capital flows evenly into Bitcoin.
3- Bull market rally, when the market approaches the ATH, the HODL who bought at the lows tend to perform at the highs.
The movements and flow of net inflows by investors since August, at $461B, are in a recovery phase, the increase was practically non-existent in other words, it shows that the inflow of net capital is completely stagnant.
As a result, we can state that the profit made by HODL is of the same magnitude and proportion as that of top buyers (STH). A scenario that aims to take a cautious view, it is necessary to see a significant movement in Bitcoin in the next 30 days to alleviate this liquidity neutrality. Net Realized profit tends to go to the value 1 as a balance between a bull market.
Written by Percival
