Bitcoin suffered a major drop in today's session as it trades well below psychological $100K mark. Bitcoin briefly dropped below $95K and Ethereum also witnessed strong selling. Ethereum price was also noticed below $3,100 but there was a recovery after the initial drop. Altcoins were also facing selling with very few coins showing some strength from lower levels. Overall sentiment in the markets is negative and Bitcoin could take a few sessions to recover from the recent selling. Still, many people who closely watch cryptocurrency markets feel that Bitcoin will bounce back soon.

On a positive note, the cryptocurrency market continues to defy bearish predictions as Bitcoin’s realized capitalization hits an unprecedented $1.1 trillion, signaling underlying strength despite sharp price corrections. According to CryptoQuant CEO Ki Young Ju, this milestone underscores that the market remains in expansion mode, not contraction. Although Bitcoin has slid from $127,000 to $95,000 in recent weeks, consistent capital inflows and rising realized value indicate sustained accumulation rather than liquidation. The implications are clear — the digital asset ecosystem is growing sturdier, even as volatility tests investor patience.

Realized Capitalization and Market Dynamics

At the center of Bitcoin’s bullish undercurrent lies the realized cap metric, a valuation method that calculates the worth of each coin based on its last on-chain transaction rather than its current market price. This method effectively gauges the total capital currently "invested" in the network, offering a more reliable indicator of market vitality than spot pricing alone.

Ki Young Ju’s recent analysis showed Bitcoin’s realized capitalization surpassing $1.1 trillion, marking the highest level in the asset’s history. He contends this data contradicts claims that Bitcoin has entered a bear phase. The reasoning is straightforward — if realized value continues rising, it means coins are changing hands at higher historical prices, revealing ongoing investor commitment.

"The market is expanding, not contracting," Ju remarked in his post accompanying the chart that visualized this record-breaking number. Historical comparisons back his point: during the 2017 bull cycle, Bitcoin’s realized cap experienced significant growth but stayed far below today’s levels. Even through multiple corrections and prolonged consolidations, the total capital tied up in the network has sustainably climbed.

Short-Term Selling Pressure and Market Psychology

Despite these robust fundamentals, Ju noted that large holders ("whales") have recently taken profits, which has temporarily pressured Bitcoin’s price. Such activity typically emerges when early investors rebalance allocations after extended rallies. However, he emphasized that these sell-offs are unlikely to mark the onset of a prolonged downturn.

As macroeconomic sentiment stabilizes and liquidity improves, Ju expects large-holder selling to taper off, allowing the market to regain upward momentum. "A bear market begins only when capital outflows dominate — not when profit-taking occurs in a broader uptrend," he explained.

Bitcoin’s resilience amid economic uncertainty continues to impress market strategists. Even after a 25% decline from October highs, on-chain data reflects steady accumulation across retail and institutional addresses. Analysts interpret this divergence — falling prices alongside record realized value — as evidence of long-term conviction among investors.

Diverging Interpretations: Whale Activity or Fresh Inflows?

Not all experts interpret the rising realized cap as an unmistakable bullish signal. Some on-chain analysts argue the increase might result from long-term holders moving coins to exchanges to take profits, rather than from fresh inflows of capital. This distinction is critical — selling by early adopters raises realized cap figures without necessarily indicating new investments entering the system.

These analysts have also observed an unusual decline in long-term holder supply during periods of price weakness, suggesting that veteran investors are reducing exposure. Historically, such trends preceded extended consolidations.

DeFi Planet, an analytics group, echoed that sentiment, warning that renewed selling pressure from large holders could lead to further market turbulence. The imbalance between whale sell-offs and retail accumulation tends to amplify volatility. Retail investors, though enthusiastic, rarely possess enough liquidity to counteract institutional exits during short-term pullbacks.

Broader Market Sentiment and Institutional Context

Market observers note that the macro backdrop remains pivotal. Global liquidity conditions, U.S. treasury yields, and central bank policy trajectories continue to shape risk asset performance, including digital currencies. Bitcoin’s ability to maintain realized capitalization growth despite tighter monetary conditions hints at its maturing investor base.

While speculative enthusiasm may ebb and flow, the structural adoption of Bitcoin — through exchange-traded funds (ETFs), institutional custody platforms, and corporate treasury holdings — now provides a level of support unseen in prior cycles. This expanded foundation helps explain why the realized cap remains firm even as spot prices fluctuate.

Changpeng Zhao, CEO of Binance , offered reassurance amid the ongoing volatility. Addressing traders concerned about Bitcoin’s correction, Zhao urged patience: "Corrections are not crashes. They’re the heartbeat of market evolution." He highlighted that such retracements often precede stronger, more sustainable moves once speculative froth is cleared.