Bitcoin Hits All-Time High In Realized Market Cap: $378 Billion
A method of assessing Bitcoin’s market cap based on the price at which each coin last moved, known as ‘realized market cap’, broke all-time highs with Friday’s move higher. It now stands at over $378 billion.
Realized market cap measures the size of Bitcoin’s active market capitalization, ignoring stashes of Bitcoin that haven’t changed hands for a long time, such as the dormant riches of Bitcoin creator Satoshi Nakamoto, whales, lost coins or long-time holders.
Data metrics platforms like Glassnode, calculate realized market cap by assigning time-sensitive values to coins. If a coin last moved in 2018, when the price of Bitcoin was $6,000, that coin is priced at $6,000 rather than today’s price.
? #Bitcoin$BTC Realized Cap just reached an ATH of $378,768,190,450.72
The standard calculation of a market capitalization is done by multiplying of all the coins in circulation by the current price of the coin. At the time of writing, Bitcoin’s total market cap is $878 billion, according to CoinMarketCap.
Realized market cap provides a better estimation of the size of the “active” Bitcoin market. BTC’s realized market cap hit its all-time high when Bitcoin’s price is still far from its peak of $64,800 suggests that there’s never been as much “active” money in Bitcoin.
On-chain analyst, Willy Woo interpreted Glassnode’s data on Twitter:
“Translation: The capital stored in the Bitcoin network just broke an all-time-highs. The network has more money in it today at $47k than it did at $64k in April. Realised Cap estimates this by summing the price paid for every coin in BTC’s circulating supply.”
Translation: The capital stored in the #Bitcoin network just broke an all-time-highs.
The network has more money in it today at $47k than it did at $64k in April.
Realised Cap estimates this by summing the price paid for every coin in BTC's circulating supply. https://t.co/a7cCbXAmXS
The spike in realized market cap coincides with Bitcoin hitting $48,000, its highest price since the market crash that began in mid-May. Bitcoin has increased by 9.5% this week and 42.5% this month. Shortly after hitting $48,000, Bitcoin fell sharply to $46,700.
Another sign of the hubbub is Bitcoin’s latest mining difficulty adjustment. In its latest fortnightly change, the Bitcoin network made mining 7.3% more difficult yesterday to account for the increased competition among miners.
The adjustment was the second consecutive positive change after two months of drops; the drops followed a crackdown on Bitcoin mining in China, which also cut Bitcoin’s price in half. Today’s all-time high for Bitcoin’s realized market cap shows traders are clawing back their coin.
At the time of writing Bitcoin trades at $46,814, with 0.76% profits on a daily chart.
