Bitcoin Realized Cap Drops to 2.5M BTC, Market Sentiment Shifts

CryptoQuant reports Bitcoin’s Realized Cap dropped to 2.5 million BTC, the lowest since March 2024. Holders faced a 69,000 BTC net loss since December 23, 2023.

This marks a sentiment shift as holders transition from profit-taking to realizing losses, reflecting broader market uncertainty.

Market Signals with 2.5M BTC Realized Cap Drop

CryptoQuant analysts highlighted the drop in Bitcoin’s Realized Cap to 2.5 million BTC as indicative of a potential bear market, reminiscent of March 2022 lows. This metric drop reports a shift in market sentiment, with holders now facing net losses totaling 69,000 BTC.

The event marks a significant movement from profit-taking to loss realization over 30 days, reflecting changing market conditions. New whales dominate this shift, holding $6 billion in unrealized losses. This contributes to market distribution over accumulation trends.

Axel Adler Jr., On-Chain Analyst, CryptoQuant, – “$89,800-$90,000 range is the critical line of defense for bulls; a breakdown below this level risks inducing panic selling.” source

Price Dynamics Amid Realization of 69,000 BTC Losses

Did you know? Realized Cap drop to similar levels triggered previous bear markets, including March 2022’s significant downturn.

Bitcoin (BTC) currently holds a price of $89,543.50, with a market cap of approximately $1.79 trillion and market dominance around 59.14%, according to CoinMarketCap. Trading volume witnessed a 34.77% decrease to about $34.43 billion over the past 24 hours.

The Coincu research team foresees the dominance of new whales exerting continued market pressure. Historical trends indicate potential future price stabilizations or further downturns if whales realize their significant unrealized losses. The market dynamic remains complex with ongoing distribution.