Bitcoin rally on the approach? BTC demand is picking up

Bitcoin’s realized market capitalization has risen to a new record high as the first wave of miners hits the network again. The market update.

The crypto market is taking a short break after the growth spurt of the past few days. In a daily comparison, the total market capitalization is down 1.7 percent, but can stay just above the mark of 2 trillion US dollars, which it regained over the weekend. Meanwhile, the Bitcoin price posted a minus of 3.3 percent and fell to 45,834 USD at the time of going to press.

Ethereum (ETH) follows the Bitcoin price movement and also kinks by 3.8 percent. Profit-taking is also pulling Cardano (ADA) down by around four percent, but the weekly balance of the currently third largest crypto currency can still be seen with a plus of 43 percent. With Binance Coin (BNB), the price slide of one percent on a daily basis is also hardly significant in view of the strong weekly performance of 20 percent increase in value.

The ripple currency XRP, on the other hand, leaves more feathers. In the past 24 hours, the course has fallen by ten percent. But the “bank coin” also compensates for the losses on a daily basis with an increase of almost 50 percent in a weekly comparison. Dogecoin (DOGE), on the other hand, slipped by four percent, while Polkadot (DOT) gained seven percent. The top performer is still Solana (SOL). The newcomer among the ten most valuable cryptocurrencies is trading around 14 percent above the level of the previous day and has thus set a new all-time high of 73 US dollars this morning.

Realized Bitcoin market capitalization at an all-time high

While the Bitcoin market capitalization is slowly approaching the record mark at around 870 billion US dollars, its “on-chain counterpart” has already got ahead of it. The realized market capitalization, which is calculated from the difference between the current rate and the rate at which the respective Bitcoin was last transferred, booked the peak value of around 380 billion US dollars for the first time. A positive indicator that reflects the current upward trend, as the network analysts at Glassnode write in the current Week-On-Chain report. The increase therefore suggests “that new capital is flowing into Bitcoin and the market is able to absorb the selling pressure”.

Accumulation trend throttles the amount of BTC in circulation

In short: the capital inflows into Bitcoin again exceed the profit realizations. A development that coincides with the net balance on the Bitcoin trading venues. Since the beginning of July, more Bitcoin has been withdrawn from the exchanges than new ones have been added. According to Glassnode, net outflows “currently range between 50,000 and 100,000 BTC per month”. The imbalance marks a break in the investment trend and the beginning of a new phase of accumulation.

After the stocks on the stock market had filled up during the sell-off phase in May and June, the rising demand again led to a shortage of the supply. Since the annual high of 2.61 million BTC, the reserves held by exchanges have fallen by almost five percent to currently 2.48 million.

Hash rate is increasing

The mining business is also picking up again after turbulent weeks. In connection with the repression of China against the mining industry, the network had to complain about a large withdrawal of the “gold diggers” and thus the fed-in computing power, which triggered the longest series of negative adjustments in the mining difficulty. However, this trend seems to be reversing again. According to Glassnode, the hash rate has “increased by about 25 percent since the bottom, which suggests that about 12.5 percent of the miners affected are back online”.

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