The Bitcoin price and the entire crypto market have surged following the outcome of the United States elections announced in the early hours of Wednesday, November 6. The premier cryptocurrency, Bitcoin, has particularly made headlines by breaching and setting new all-time high prices over the past few days.
Remarkably, Bitcoin has shown no signs of weakening as it moved into the weekend, with the market leader reaching a new record high above $77,000 on Friday, November 8. This impressive performance is partly attributed to the recent victory of former President Donald Trump in the US elections. However, on-chain data indicates that this rally has been in the making for some time.
An intriguing development in Bitcoin’s meteoric rise is highlighted by the realized cap indicator. In a November 8 post, blockchain analytics firm Glassnode reported that Bitcoin’s realized cap hit a new all-time high of $656 billion. The realized cap metric reflects the amount of capital flowing in and out of Bitcoin, and the latest figure represents a net capital inflow of over $2.5 billion in the past month. This influx of capital suggests the entry of new investors, both retail and institutional.
With the realized cap and Bitcoin price consolidating in recent months, the sudden increase to $656 billion suggests that Bitcoin may be transitioning from a “reaccumulation” phase to a markup phase. If this trend of capital inflow continues, it could sustain and further increase Bitcoin’s price in the upcoming months.
As of this writing, Bitcoin is valued at around $76,700, having slightly retreated from its peak above the historical $77,000 level. Data from CoinGecko shows that Bitcoin is up by an impressive 10% over the past week.
