Why did Bitcoin’s market cap surge by over $102 billion while realized cap only grew by $4 billion?

Why did Bitcoin’s market cap surge by over $102 billion while realized cap only grew by $4 billion?

Bitcoin’s price saw a significant increase in February, jumping from $43,049 at the beginning of the month to $49,900 on Feb. 12, as of press time. Crossing $49,000 marks a significant milestone for BTC, as it indicates the potential to breach the $50,000 resistance and move closer to its all-time high. Alongside its price surge, Bitcoin’s market capitalization increased dramatically by over $102.5 billion in February. During the same timeframe, Bitcoin’s realized cap saw a more modest increase, rising just over $4 billion, from $447.48 billion to $451.66 billion.
Understanding the differences and increases in these two metrics is crucial for market analysis. While both might seem too broad to offer insight into subtle market movements, their difference, and long-term trends are often among the best market health indicators. This is especially true for realized cap, an often overlooked metric that provides valuable information about the aggregate cost basis for the entire market.

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