Bitcoin is edging closer to the $100,000 mark, hinting at the early stages of a new bull cycle. Recent data from on-chain analytics platform CryptoQuant and research firm Glassnode suggests that the market is laying strong foundations for a potentially significant price breakout, fuelled by consistent capital inflows and investor conviction.

Realised Cap Hits Record Highs

One of the most notable indicators of Bitcoin’s growing strength is its realised capitalisation, which measures the value at which each unit of Bitcoin last moved on the blockchain. This metric recently hit an all-time high of $891 billion, signalling renewed confidence among investors.

According to CryptoQuant contributor Carmelo Alemán, this rise in realised cap highlights a broader shift across both long-term (LTH) and short-term holders (STH), reflecting a steady influx of investment capital and a belief in Bitcoin’s long-term value as a financial asset. “This new all-time high not only reflects a surge in invested capital but also a growing conviction in Bitcoin’s long-term potential,” Alemán noted.

Sustained Inflows Since Late 2023

The ongoing accumulation of Bitcoin can be traced back to late 2023, with steady capital inflows helping drive prices upwards. Despite some market concerns about profit-taking and short-term volatility, overall conditions suggest that the bull trend remains intact.

Glassnode, in its latest “The Week Onchain” newsletter, reported that buy and sell-side dynamics are balanced around the $100K mark. “A surge in profit taking can be observed in recent weeks, with the recent rally drawing in over $1B/day in net capital inflows,” the report said, adding that this indicates healthy demand capable of absorbing supply.

Profit-Taking Not Halting Momentum

While long- and short-term holders have been realising profits averaging $1 billion daily, this activity has not derailed the broader bullish momentum. Glassnode noted that the market has remained in a “profit-driven regime” since October 2023, with inflows consistently outweighing outflows.

This trend, the firm suggests, is a constructive signal. “It points to initial indicators of a return of demand-side strength, allowing sellers to lock in profits and speaking to buyers willing to pick up coins at the current market price.”

A New Bull Cycle Emerging?

As Bitcoin continues its upward trajectory, analysts suggest that the market may be entering the early stages of a fresh bull cycle. The combination of high realised cap, strong capital inflows, and steady demand paints a promising picture for further growth.

Should these trends persist, a significant breakout beyond the $100K threshold may soon be more than just a psychological milestone; it could mark a transformative moment in Bitcoin’s financial journey.