Bitcoin: Is this metric enough to assess market sentiment?

  • 📰 CryptoAmb
  • ⏱ Reading Time:
  • 30 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 68%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Bitcoin's Realized Cap is an important metric to determine the economic value entering and exiting the market. Here's what it says about the king coin.

based on the price of each of its coins when they last moved. For example, when BTC is spent at a price higher than it was last moved, realized cap increases and vice versa.

Logically, realized cap moves higher during strong bull momentum. This is because long-term holders sell holdings, which were previously accumulated at discounted rates in the bear market, at very high prices. The above graph also captured this behavior. Notice how realized cap dropped lower during the peak of crypto winter in 2022. The subsequent recovery in 2023 represented the ongoing accumulation phase.In the case of Bitcoin, apart from realized profit and losses, the new coins entering circulation through block mining also contributed to the daily realized market cap.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 22. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Optimism flips Arbitrum in market cap: What’s next?Optimism outperforms Arbitrum in terms of market cap. But despite the surge in price, OP fails to reach monthly highs.
Source: CryptoAmb - 🏆 22. / 68 Read more »