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Bitcoin’s realized capitalization hits a record $ 106 billion as “fear” returns to a BTC index

June 12, 2020

Bitcoin price (BTC) hit a new all-time high this week as declining market sentiment did not slow the change from a metric to $ 106 billion.

Data from the chain monitoring resource Coin Metrics show that from June 11th Bitcoin’s realized capitalization is a record $ 106.26 billion.

Capitalization is “good for Bitcoin”

Capitalization is another way of calculating the value of Bitcoin, an alternative to traditional market capitalization.

Bitcoin’s realized capitalization hits a record $ 106 billion as “fear” returns to a BTC indexBitcoin’s realized capitalization hits a record $ 106 billion as “fear” returns to a BTC index

The number is calculated by taking the price at which each Bitcoin was last traded and the size of each trade and then multiplying them together.

The indicator, originally formulated by Coin Metrics, is enjoying growing popularity among analysts and well-known cryptocurrency figures. In response to the latest tips, Bitcoin’s Twitter account described Progress as simply “good for Bitcoin”.

Realized capitalization declined slightly after the March collapse, dropping a high of around $ 1 billion before continuing its upward trend.

This underscores its structure: in real terms, Bitcoin lost 60% of its price at this point, while, as Cointelegraph reported, more than 60% of the offer has not increased in over a year.

Bitcoin broke the $ 100 billion capitalization it first made in August 2019.

Bitcoin realized the cap chart

Bitcoin has created a historical chart of capitalization. Source: coin metrics

The fear and greed index drops by 14 points in one day

The capitalization made is a remarkable contrast to the general mood of the market this week. On Thursday, bearish signs culminated in a wave of currency selling pressures that cut the BTC / USD pair by 8% in hours.

The move took its toll on the fear and greed index, a special measure of traders’ attitudes.

After remaining in the “neutral” area with a score of 53/100, it suddenly fell 15 points to 38/100, which meant a return to the “fear” zone.

Crypto Fear  Greed Index 1-month chart

One-month chart of fear and greed index. Source: Alternative.me

Theoretically, The closer the index gets to zero, the more it indicates that traders are disproportionately bearish.

Earlier this year, there were seven consecutive weeks in the lowest extreme fear category.