Recent assessments by analysts at Glassnode indicate that Bitcoin has initiated its fourth cycle in history, propelled by its relentless climb beyond the $70,000 milestone.

Observers note a palpable surge in interest surrounding the cryptocurrency, suggesting its transition into a phase of euphoria.

On-Chain Data Analysis Highlights Surge in Realized Cap

Drawing insights from on-chain data analysis, the Bitcoin Realized Cap, serving as a metric to gauge the total wealth stored in BTC on-chain, has surged to an unprecedented high of $504 billion. This remarkable surge reflects an impressive $40 billion increase in capital inflows since March 1 alone.

Analysts underscore the current trajectory of the Realized Cap, which is experiencing a notable monthly increase of $54 billion. Such momentum is bringing Bitcoin closer to levels reminiscent of the early stages of the 2021 bull run. This underscores the significant influx of capital into Bitcoin, partly attributed to the success and burgeoning demand for newly introduced spot exchange-traded funds (ETFs), greenlit by the U.S. Securities and Exchange Commission in January.

Realized Profits Locked In Amidst Remarkable Growth

In light of recent developments, Glassnode has observed a noteworthy trend: a substantial amount of realized profit has been locked in through on-chain spending, surpassing "statistically high levels." Analysts draw parallels to previous euphoric phases, reminiscent of those witnessed during the bull markets of 2017 and 2021.

The observed surge in realized profit lock-ins indicates market participants' inclination towards securing profits amidst the ongoing growth trajectory.

According to Crypto News, such actions echo patterns observed during previous euphoric phases, suggesting a psychological shift among investors towards capitalizing on gains amid heightened market exuberance.

A Coin Telegraph report states the realized profit metric has surged to "significantly positive" levels, indicating heightened profit-taking activity and increased demand for long-side leverage.

In summary, Bitcoin's ascent into its fourth historical cycle is marked by a confluence of factors, including a sustained surge in price, heightened interest from market participants, and significant capital influxes.

While the cryptocurrency embarks on this new phase, market observers remain vigilant, cognizant of the potential implications of euphoria-driven behaviors and the need for prudent risk management strategies amidst evolving market dynamics.

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