Glassnode notes Bitcoin community experiencing euphoria as cryptocurrency reaches new highs
Bitcoin has reached new all-time highs, indicating that it has entered the euphoria zone. This surge in price is accompanied by a significant influx of capital, driven by the success of spot Bitcoin ETFs.
According to analysts at Glassnode, this is the fourth cycle in Bitcoin’s history, and the interest surrounding the cryptocurrency is pushing it further into the euphoria zone. On-chain data analysis shows that the Bitcoin Realized Cap, which measures the total wealth stored in BTC on-chain, has reached a new high of $504 billion. Since March 1st alone, there has been a $40 billion increase in capital inflows.
Analysts state that the Realized Cap is currently growing at a rate of $54 billion per month, bringing Bitcoin closer to levels last seen during the early 2021 bull run. This highlights the significant capital influx into Bitcoin, fueled in part by the success and demand for new spot ETFs, which were approved by the U.S. Securities and Exchange Commission in January.
However, Glassnode has observed that a significant amount of realized profit has been locked in through on-chain spending this week, surpassing statistically high levels. Analysts draw parallels to previous euphoric phases, such as those seen in the 2017 and 2021 bull markets.
Despite this, Bitcoin’s rally above $73,000 continues, showing resilience in the face of swift plunges.
