The Realized Cap for Bitcoin held by long-term investors has plunged 89%, dropping from $126 million to $13.6 million. This sharp decline indicates significantly reduced profit-taking activity among holders with over one-year investment horizons compared to late May.
The Realized Cap metric, calculated by multiplying wallet holdings by their average acquisition cost, serves as a critical indicator of investor behavior and market dynamics. Its steep contraction suggests long-term holders are retaining assets rather than capitalizing on gains.
Bitcoin’s price has maintained relative stability despite this substantial shift in realized value, pointing to balanced market conditions amid changing holder strategies.