Bitcoin’s bull cycle has potentially reached its end, as the latest market analytics suggest. Ki Young Ju, the CEO of CryptoQuant and a popular crypto analyst, considers the current time to be the conclusion of the ongoing bull cycle in line with the on-chain metric “Realized Cap.” The crypto analyst shared his thoughts concerning the current status of the Bitcoin market in a recent X post.

CryptoQuant CEO Suggests Conclusion of Bitcoin Bull Cycle

Ki Young Ju’s analysis points out that Bitcoin’s Realized Cap hints toward a potential end of the present bull cycle. The respective metric is currently highlighting bearish signs. Hence, despite the latest capital inflows, the price of the top crypto asset is showing no response.

Realized Cap denotes a key metric in the crypto market to gauge the actual amount of capital investment in Bitcoin. In this respect, it tracks the worth of the $BTC coins in line with the price at the time of their last shift on the blockchain. Additionally, it treats the inflowing $BTC in the category of “buys” while outgoing $BTC in the category of “sells.” With the aggregation of the respective values, analysts measure the cumulative real-world capital flowing into the Bitcoin ecosystem over time.

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On the other hand, Market Cap is based on the latest trade price multiplied by the cumulative supply. Ju warns that several investors misinterpret the reaction of the market capitalization to trades. A comparatively low “buy” within an illiquid setting with decreased sell pressure as the potential to raise the price and market cap of Bitcoin. This is precisely what MicroStrategy leveraged with the use of convertible bonds for the purchase of Bitcoin, where modest inflows paved the way for outsized profits in valuation because of supportive market dynamics.

Realized Cap Surges Whereas Market Cap Remains Ineffective in Changing Bitcoin’s Price

Nonetheless, as the CryptoQuant CEO puts it, the reverse is now taking place. Thus, even the big capital amounts entering the market are not changing the price, marking a huge sell-side pressure. Keeping this in view, the current trend, where Realized Cap is surging whereas Market Cap is stagnant, underscores a bearish momentum. This reveals a clear sign of the bull phase’s conclusion without any upward trend.