Bitcoin Realized Cap Hits $1.1T Despite Weak ETF Flows

On-Chain Demand Remains Strong

Bitcoin’s realized cap, a key metric tracking the value of coins based on their last movement, has soared by $8 billion, pushing the total above the $1.1 trillion mark. This significant increase signals robust on-chain demand, suggesting that long-term holders are actively moving coins, which typically indicates increased investor confidence.

Absence of Institutional Support

Despite the impressive realized cap growth, the broader market narrative tells a more cautious story. Analysts note that while on-chain metrics reflect growing user engagement, the rally is not yet being backed by external inflows from institutional sources or ETFs.

Institutional Buyers Missing from the Rally

CryptoQuant highlights a notable absence of ETF inflows and strategic accumulation from large investors. Traditionally, such inflows serve as a strong support for sustained market rallies, offering both liquidity and confidence. The lack of activity from these segments suggests that the recent uptick in Bitcoin’s realized cap may be more retail-driven or led by organic network usage.

This creates a divergence between on-chain enthusiasm and broader market participation. Without support from institutional buyers, there’s concern that the market may struggle to maintain momentum in the short term.

Outlook for Bitcoin's Near-Term

While the surge in realized cap shows strength among Bitcoin holders, the recovery lacks the depth seen in previous bull runs where ETF flows and corporate strategy buying played a key role. For Bitcoin to make a stronger push past current resistance levels, market watchers will be looking for signs of renewed institutional interest and fresh capital from ETFs.

Until then, Bitcoin’s current rally might be viewed as a foundation being built by committed holders — a positive sign, but one that needs broader support to sustain significant upward movement.