Bitcoin liquidity shows signs of improvement, analyst says

Bitcoin liquidity is showing signs of improvement as the 30-day rate of change in realized cap turned positive after remaining in negative territory for 87 days, according to an analysis by on-chain analyst Axel Adler Jr. Adler said the metric crossed above zero on Aug. 24 and rose from +0.10% to +0.88% as of Sept. 6. Realized cap also increased to $1.068 trillion, up $9.36 billion over the past 30 days. Adler explained that realized cap continued to rise even as BTC recently fluctuated around $80,000, which he viewed as a sign that the prolonged capital contraction is reversing. Adler added that for Bitcoin’s recovery to continue, the 30-day rate of change in realized cap must remain positive and total realized cap must keep expanding. Realized cap is one of the most important indicators for assessing liquidity inflows and outflows, along with investor behavior and sentiment.