Bitcoin’s (BTC) realized capitalization, an on-chain metric that measures the value of coins at the price they last transacted, has continued rising even as the spot price drops, signaling investor conviction to the network and an indication the economic backbone of the largest cryptocurrency is strengthening.

After first crossing $1 trillion in July, Glassnode data shows that realized cap now sits at a record $1.05 trillion, despite the spot price slipping around 12% from its all-time peak near $124,000. While market capitalization falls as the spot price declines because it prices every coin at the current level, realized cap adjusts only when coins are spent and repriced on-chain.

Under the realized cap model, dormant holdings, long-term holders and lost coins act as stabilizers, preventing large drawdowns even when short-term price action turns negative. The result is a measure that better reflects true investor conviction and the depth of capital committed to the blockchain.

In previous cycles, realized cap suffered much steeper drawdowns. During the 2014–15 and 2018 bear markets, it fell by as much as 20% as prolonged capitulation forced large volumes of coins to be repriced lower. Even in 2022, the metric experienced a drawdown near 18%, according to Glassnode data.

This time, in contrast, realized cap is gaining despite a double-digit price correction. This highlights how the present market is absorbing volatility with a far more resilient underlying base.