Bitcoin Buyers Step Back In As Realized Cap Gains $4.6 Billion, Is A Bull Market Finally Here?

• On-chain data showed Bitcoin's realized cap increased by more than $4.6 billion over the past week, pointing to improving demand.

• Short-term holders were sitting on nearly 15% unrealized profits, with their average cost basis around $70,100.

• However, the broader recovery remains early, with the 30-day change in realized cap still around 0.4%.

Bitcoin (BTC) is showing early signs of renewed demand, with on-chain data indicating that capital is beginning to return to the market.

According to on-chain data by Cryptoquant analyst Darkfost, Bitcoin's realized cap increased by more than $4.6 billion over the past week. This means that the realized cap values Bitcoin based on the price at which each coin last moved. An increase can suggest that coins are changing hands at higher prices and that new demand is entering the market.

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Darkfost noted that the move resembles a pattern seen during Bitcoin's previous bear market, when the realized cap began recovering after a prolonged decline. But the increase should not be viewed as $4.6 billion of direct cash inflows, he cautioned. Part of the rise can also come from coins being sold and repriced as holders take losses, he added.