Bitcoin's recent price surge from approximately $60,000 to $100,000 has pushed the Realized Price from around $31,000–$32,000 to $37,000. This increase suggests several positive market dynamics.
Firstly, the higher Realized Price indicates significant capital inflows, with new participants entering the market at elevated levels, reflecting growing confidence in Bitcoin's potential.
Secondly, the rising average acquisition cost provides a stronger cost basis, offering robust market support during potential corrections.
Lastly, reduced selling pressure from long-term holders suggests a decrease in sell-side liquidity.
While the gap between Market Price and Realized Price may hint at short-term overheating, historical trends show that such gaps have not hindered price growth during past bull runs. The sustained rise in Realized Price underscores market confidence, though careful monitoring is essential to assess the rally's longevity.