Analyst: Bitcoin showing signs of liquidity recovery

Signs of liquidity flowing into Bitcoin have emerged, on-chain analyst Darkfost said on X. He noted that BTC's Realized Cap has now turned positive. Darkfost described the Realized Cap as the most critical indicator for assessing liquidity flows alongside investor behavior and sentiment. While not highly significant in isolation, he said the metric's recovery is noteworthy after it plunged to -2.6% in February. During the previous correction, the Realized Cap decreased as investors who bought near the peak realized losses. However, with the recent improvement in BTC's price trend, market sentiment is shifting as funds flow back in and investor confidence recovers. The key question now, he explained, is whether the trend will continue or if investors will take profits, judging the current price as still overvalued.