Mike Smith
3 days ago
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Amid the rapid changes in the cryptocurrency market, one of the most significant on-chain indicators — Market Cap vs. Realized Cap Ratio — is once again signaling a transition to a bullish phase. This indicator shows the ratio between the current market value of Bitcoin and its realized capitalization, and its upward reversal is traditionally perceived as the beginning of a new stage of growth.
The latest data presented by independent analyst Markus Thielen confirms: the metric has sharply changed direction, which has become an important signal for investors. Similar behavior has already been observed in the past, for example, in 2020. Then, a sharp surge in the indicator marked the end of the correction phase and served as a harbinger of a sustainable upward trend. A similar reversal was also recorded in 2017 and 2021 — both periods were marked by a rapid increase in the value of Bitcoin.
The chart published by the analytical platform Matrixport clearly illustrates that the indicator's entry into the positive area has historically coincided with the beginning of a rapid price rally. At the moment, the line is moving upward again, which may indicate a restoration of interest from institutional investors and an active return of capital to the sector.
The combination of technical and on-chain data is of particular importance. The combined analysis of these sources gives additional confidence to the current trend. Given the continuing inflow of funds into the Bitcoin ETF and the weakening pressure from short-term speculators, favorable conditions are being formed for the subsequent strengthening of the asset. In such conditions, the Market Cap vs. Realized Cap Ratio indicator becomes not just a metric, but an indicator of the general market sentiment.
Experts emphasize that although the reversal of this particular metric inspires optimism, a complete picture is formed only by observing many other indicators. Some of them do not yet demonstrate similar confidence. However, the sharp rise in this ratio has already piqued the interest of long-term holders, for whom such signals serve as a basis for making strategic decisions.
The focus is not only on historical parallels, but also on the dynamics of current market sentiment, including the influence of macroeconomic factors and regulatory initiatives. All this has a complex impact on the assessment of the prospects of Bitcoin, which seems to be finding ground for growth again.
