Bitcoin Demand Returns as Realized Cap Surges $4.6 Billion

Bitcoin's realized cap has increased by over $4.6 billion in the past week, suggesting improving demand for the cryptocurrency.

This increase is based on on-chain data that values Bitcoin at the price at which each coin last moved. Darkfost, a Cryptoquant analyst, noted that this pattern resembles one seen during Bitcoin's previous bear market, when the realized cap began recovering after a prolonged decline.

However, not all of this gain can be attributed to new demand entering the market. Part of it may come from coins being sold and repriced as holders take losses, according to Darkfost.

Short-term holders are currently sitting on nearly 15% average unrealized profits, with their cost basis around $70,100. This could potentially lead to some selling pressure if these holders decide to cash in.