The current Bitcoin market cycle sees strength in the current bull run as the realized price, one of the most important on-chain metrics, breaks above the $45,000 mark. This achievement is another indication that, despite the short-term fluctuations, the general cryptocurrency market is still on the rise.
At the time of this report, Bitcoin is being priced at a value of about $103,000, with a continued and steady rise in realized price. The realized price is the average payment of all circulating supply and is an important indicator of the behavior of investors and market sentiments.
Realized Price Trajectory Points to the Bullish Continuity
It has been observed from historical data that when the realized price is flat or declining (as indicated by the turning points on the chart), then Bitcoin tends to find itself in a downtrend or undergoes major price correction. However, it is a different story from the current data.
The continued appreciation in realized price, as drawn from recent on-chain analysis, is an indicator that more market players are buying bitcoin at higher prices. Such a trend over time shows high conviction from the buyers and long-term conviction in the asset.
Institutional Inflows Using Spot ETFs Are the Trend Driver
One of the major factors for the increase in realized price is institutional demand, especially via spot Bitcoin ETFs. A large number of assets have been piling up in Bitcoin, with firms such as Strategy, among others, accumulating large volumes of the cryptocurrency. This amount of money into Bitcoin has been responsible for a massive capital flow into the market. These bullish purchases have increased the overall cost basis of Bitcoin holders and maintained upward pressure on the price.
Market Outlook Remains Constructive
Both market price and realized price are in a position of harmony, with the direction being positive, making analysts consider the situation as standing as structurally bullish. Although temporary corrections are still possible, the upward movement of the realized price is a very good confirmation that Bitcoin is still in a positive market cycle.
With pace in institutional adoption and a constant flow of capital, the market would have more confirmation on the realized price as a leading indicator towards future long-term value appreciation.
