Bitcoin has risen from around $60,000 to $100,000 in the past few months, pushing the realized price from around $31,000–$32,000 to $37,000. This suggests:
- New capital inflows: Higher realized prices reflect new entrants, indicating growing confidence in Bitcoin.
- Stronger cost base: Rising average purchase costs reinforce market support during corrections.
- Declining selling pressure: Long-term holders appear to be holding back, reducing selling liquidity.
While the gap between the market price and realized price may signal short-term overheating, history shows that this has not deterred price growth in previous rallies. Watch carefully to assess the sustainability of this rally.