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Bitcoin’s “realized capitalization” hits a new record, similar to the drop to $ 3,000 before March

June 19, 2020

The “realized capitalization” of Bitcoin (BTC), a statistic from the market analysis platform Glassnode, reached a new all-time high on June 19. This could indicate a general increase in new investors in the cryptocurrency market in the past few months.

Glass knot said::

“The realized capitalization of Bitcoin has reached a new all-time high. At $ 106.63 billion, it has already surpassed the previous record shortly before the crash on Black Thursday three months ago.”

The realized capitalization of Bitcoin reaches a new level. Source: Glassnode

Bitcoin’s “realized capitalization” hits a new record, similar to the drop to $ 3,000 before March
Bitcoin’s “realized capitalization” hits a new record, similar to the drop to $ 3,000 before March

The realized capitalization of Bitcoin reaches a new level. Source: Glass knot

The last time bitcoin capitalization, not to be confused with market capitalization or market capitalization, reached a record high was in February 2020. Shortly thereafter, over a period of two months, the price of bitcoin was corrected to just $ 3,600 on BitMEX .

Is it time to be scared or bullish?

The realized capitalization of Bitcoin refers to the total amount of Bitcoin in the market, calculated from the price of BTC when the funds were actually last moved. For example, if a wallet contains 1 BTC that was last moved in June 2019, calculate 1 BTC as $ 14,000, the BTC price at that time.

The Glassnode team explains:

“The realized capitalization values ​​different parts of the deliveries at different prices (instead of using the current daily closing time). In particular, it is calculated by evaluating each UTXO based on the price of the last movement.”

The statistics that reach a new high can be understood in two ways: Many new investors are entering the crypto market, so that they may mark a local top or simply be an upward trend in the medium term.

In February 2020, the price of Bitcoin rose to $ 10,550. The Bitcoin futures market, particularly that of Bitcoin, saw an increase in daily trading volume and an increase in open positions as trading activity increased rapidly. At BitMEX, the open interest, the total number of long and short contracts, rose to over $ 1 billion.

Bitcoin’s capitalization hit a record high in February 2020, possibly because many investors bought BTC in the $ 9,000 to $ 10,000 range and transferred it from exchanges to purses. Over the next two months, BTC experienced one of the steepest declines in its history, largely due to the maximum uncertainty that followed the fall of the world stock market.

However, the metric can also be rated as an optimistic trend that can indicate a gradual accumulation. Bitcoin trader Luke Martin said::

“The amount of dollars that buyers have invested in BTC has just reached a new all-time high. The capitalization realized measures the value of all currencies at the price of the last transaction. The price is not there yet, but the conviction is.”

Bitcoin is at a crucial point, as many statistics show

While the realized capitalization of Bitcoin is at a new high, the biggest upward correction in Bitcoin mining difficulty has been in June for over two years. The number of long-term BTC holders peaked at four years, and the volume of the options market rose to an unprecedented level.

Record numbers based on various statistics and indicators indicate that Bitcoin is at a crucial point and that the coming weeks should be of crucial importance for BTC’s medium-term price development.