Report: Bitcoin has achieved a market value of $850 billion, becoming a global macro asset of concern to multiple countries and institutions

Odaily Planet Daily News: According to a recent report by Glassnode, since November 2022, Bitcoin has absorbed approximately $450 billion in additional capital, bringing its total realized cap to $850 billion, making it a global macro asset of concern to countries and institutions. It stated that the growth in Bitcoin's market value has been driven by its increasingly important role on the global stage, which has attracted institutions and sovereign entities. The report emphasizes that the participation of nation states in Bitcoin is a key factor, including Bhutan's involvement in large-scale mining operations, El Salvador's establishment of Bitcoin as a legal tender, and the United States' consideration of its potential as a strategic reserve asset. In addition, Bitcoin also serves as a decentralized payment network. In the past year, the Bitcoin network has processed an average of $8.7 billion in adjusted economic transactions per day, with a total transaction volume of $3.2 trillion. The report also points out that new demand is now experiencing explosive growth, rather than continuous inflows like in previous cycles. Compared to the peak in 2021, the participation of small retail investors has decreased, while large entities have increased their holdings. Despite the favorable market conditions, Google's search interest in Bitcoin has not yet reached the level of 2021. The investor community is undergoing changes, with retail participants showing more strategic increase in holdings. The launch of the US spot Bitcoin ETF has provided institutional investors with investment opportunities, with a net inflow of over $40 billion within one year and a comprehensive asset management scale exceeding $120 billion. The Bitcoin investor community has shown resilience during the market downturn. The actual losses in the current cycle are lower than in previous cycles, with the only significant event being the yen arbitrage liquidation on August 5, 2024. The report also emphasizes that unlike past cycles, the decline of Bitcoin is more controllable and has lower actual volatility. Overall, the price trend of this cycle is characterized by a series of increases followed by a period of consolidation, with a more stable market structure due to more mature participants trading Bitcoin and other cryptocurrencies.