Bitcoin’s recent surge to new all-time highs signifies its transition into a phase of euphoric sentiment among investors, driven in part by significant capital inflows stemming from the popularity of spot Bitcoin ETFs.
Glassnode analysts observe that Bitcoin has entered its fourth cycle, marked by its price surpassing the $70,000 threshold. The heightened interest surrounding the cryptocurrency suggests a shift towards euphoria among market participants.
On-chain data analysis reveals that the Bitcoin Realized Cap, which measures the total value of BTC stored on-chain, has reached a new peak of $504 billion. This represents a notable $40 billion increase in capital inflows since March 1st alone. Analysts note that the Realized Cap is currently growing at a rate of $54 billion per month, approaching levels last witnessed during the early stages of the 2021 bull market.
The surge in capital inflows into Bitcoin is partly attributed to the success and demand for newly launched spot exchange-traded funds (ETFs), approved by the U.S. Securities and Exchange Commission in January.
However, Glassnode highlights a significant level of realized profit being locked in through on-chain spending this week, surpassing historically high levels. Analysts draw parallels to previous euphoric phases, reminiscent of the 2017 and 2021 bull markets, indicating a potential inflection point in investor sentiment.