Bitcoin (BTC) on-Chain Analysis: Market Cap Falls Below Realized Cap

2022-7-15 21:00

Be[in]Crypto takes a look at Bitcoin (BTC) on-chain indicators, more specifically the realized and market capitalizations and their relationship with each other.

Realized and market caps

The market cap (MC), is derived by multiplying the total number of coins that are minted with the current price of BTC. On the other hand, the realized cap (RC) uses a slightly altered formula. Instead of the current price, it uses the price at the time a transaction last occurred.

As a result of this modification, it can be seen as a more precise representation of the current value of BTC. One of the main features of the realized cap is the devaluation of coins that have not moved for a long time or are lost.

The main characteristic of bull markets is that RC usually increases at a rapid rate. This occurs because old coins are spent in order to realize profits. Conversely, RC falls in bear markets, when investors sell at a loss. 

Ratio between the two for BTC

The more interesting characteristics for determining the trend come from the relationship between the two capitalization formulas.

In Nov 2019, MC fell below the RC for the first time since that bull run began. It stayed there for five months (black circle), until the price finally moved above it. But, the bottom was reached less than one month after the market cap first fell below the realized cap. 

In March 2020, MC only briefly fell below RC and stayed there for less than one week (red circle).

In 2022, the MC fell below RC in June 12 (red circle). So, it has been below it for one month.

Market Cap/Realized Cap Chart By Glassnode

Going further back in time, MC fell below RC on Jan 1 2015. Afterwards, the bottom was reached on Jan 14, exactly two weeks after the first cross. However, MC stayed below RC for 11 months, more specifically until Nov 2015. This period was associated with consolidation in the price of BTC.

Market Cap/Realized Cap Chart By Glassnode

As a result of these readings, if previous history is any indication, BTC has either already reached a bottom or will soon do so. A movement of the market cap above the realized cap would be a decisive sign that the new bull market has begun.

For Be[in]Crypto’s latest bitcoin (BTC) analysis, click here.

The post Bitcoin (BTC) on-Chain Analysis: Market Cap Falls Below Realized Cap appeared first on BeInCrypto.

origin »

Bitcoin price in Telegram @btc_price_every_hour

BottleCaps (CAP) на Currencies.ru

$ 0.00031672 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $1.0E-7
Капитализация $0 Rank 99999
Доступно / Всего 0 CAP

cap bitcoin market realized btc on-chain falls

Источник: beincrypto.com

cap bitcoin → Результатов: 126


Фото:

Bitcoin’s Realized Cap Adds $43 Billion Since the 2017 Peak to Hit A New ATH; A 60% Increase

While the price of bitcoin is struggling around $10,000, although still holding strong to the key psychological level, Bitcoin realized its cap has hit an all-time high. Compared to the $197 billion market cap of the leading digital asset, which takes into account the current price and circulating supply, the realized cap has reached $115 […] The post Bitcoin's Realized Cap Adds Billion Since the 2017 Peak to Hit A New ATH; A 60% Increase first appeared on BitcoinExchangeGuide.

2020-9-25 20:11


Bitcoin’s $132bn market cap puts it above Turkey in terms of M1 money supply

Bitcoin’s $132 billion market cap might be a far cry from its 2017 all-time high, but it doesn’t mean it’s not playing in the big leagues. According to data from the CIA, Bitcoin’s current market cap makes it the 34th largest economy in terms of M1 money supply, just below the United Arab Emirates (UAE) […] The post Bitcoin’s $132bn market cap puts it above Turkey in terms of M1 money supply appeared first on CryptoSlate.

2020-1-1 00:33


Фото:

Bitcoin Market Dominance Is Actually Over 75%: Ex Google Exec

Bitcoin in fact accounts for a much larger proportion of the overall cryptocurrency market, a former Google and Facebook executive has claimed. Bitcoin Market Dominance Has Long Been over 60% Presenting new figures on social media August 6, Avichal Garg, who now runs cryptocurrency asset management firm Electric Capital, said standard methods for measuring Bitcoin’s dominance were flawed.

2019-8-6 13:00


Former Goldman Sachs Executive, Raoul Pal Believes Bitcoin Is Currently Too Cheap

While speaking in a podcast on July 29, 2019, Raoul Pal, former Goldman Sachs executive opined that Bitcoin’s market capitalization is unreasonably underpriced. According to Pal, even the least possible chance for Bitcoin’s market cap to equate that of the global money supply and global debt of $80 trillion will still land the Bitcoin’s market […] The post Former Goldman Sachs Executive, Raoul Pal Believes Bitcoin Is Currently Too Cheap appeared first on ZyCrypto.

2019-8-1 00:02


Фото:

Bitcoin Is ‘Ludicrously Underpriced’: Ex-Goldman Sachs Exec

Bitcoin’s market cap could explode to $8 trillion even under conservative estimates, former Goldman Sachs executive, Raoul Pal has said.   Bitcoin Market Cap To $8 Trillion? Speaking during his appearance on the Stephan Livera Podcast July 29, Pal, who is founder and CEO of Global Macro Investor and Real Vision Group, suggested the potential for Bitcoin’s value increasing was all but limitless.

2019-7-31 18:00


Gominer ICO

Gominer Token is a Peer-to-Peer token that has a sophisticated level of security for a multi-functional digital currency and for all future use expansion. The token is created to help our user to interact and expand the way of their earning in Cloud mining.

2019-7-28 17:33


Bitcoin Overpriced? Investors Substitute BTC For ETH With Multiple Reasons Highlighted

The comparison between Bitcoin and altcoins have for a long time presented multiple debates in the cryptocurrency space. While Bitcoin being the most popular and most valued cryptocurrency by market cap has had one of the best running in adaptation and overall value, some people are still of the opinion that a few altcoins show […] The post Bitcoin Overpriced? Investors Substitute BTC For ETH With Multiple Reasons Highlighted appeared first on ZyCrypto.

2019-7-25 23:36


дальше еще 77 новостей →

Партнеры Currencies.ru



Реклама на Currencies.ru

Самое свежее на Currencies.ru

Bitcoin slips below $67k as ETF outflows curb risk appetite

Key takeaways BTC is down 2%, erasing the recovery earlier this week, US-listed spot ETF recorded an outflow of $173.73 million on Wednesday, breaking its two days of inflow this week. Bitcoin faces continued losses amid weaker institutional demand Bitcoin (BTC) prices continued to decline on Thursday, trading below $67,000, almost completely erasing the recovery […] The post Bitcoin slips below $67k as ETF outflows curb risk appetite appeared first on CoinJournal.

Bitcoin near $68K as fear spikes: Santiment sees buy signal

Bitcoin price hovers near $68,500 but saw intraday lows of $68,000. Analysts say a textbook buy signal is flashing. Bulls could target $75,000-$80,000 next. Bitcoin continues to face headwinds, with ongoing tensions in the Iran conflict and the macro outlook key.

Bitcoin retests $70K as veteran trader flags ‘ugly’ setup

Bitcoin traded to intraday lows of $70,500 amid key macro and geopolitical-related events. Veteran trader Peter Brandt has highlighted a potential bearish retest of support. The Iran war and inflation concerns tick potential negative catalysts boxes.

Why QCP Capital says BTC is a ‘stress barometer’

QCP sees Bitcoin as a ‘stress barometer’ amid macro, geopolitical risks. BTC continues to eye $70,000 as support, with gains key to upside continuation. Breakdown risks BTC retesting $63k lows, where prior dip-buying emerged.