The “realised capitalisation” of Bitcoin (BTC), a statistic observed by the market analysis platform, Glassnode, reached a new all-time high on 19 June. It may indicate a general increase in new investors in the cryptomoney market in recent months.
“Bitcoin’s realized capitalization has reached a new all-time high. At $106.63 billion, it has already surpassed the previous record set just before the Black Thursday crash three months ago.
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The last time Bitcoin’s capitalization, not to be confused with market capitalization, reached a historic high was in February 2020. Shortly after that, within two months, Bitcoin’s price was corrected to just USD 3,600 on BitMEX.
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The realized Bitcoin capitalization refers to the total amount of Bitcoin in the market calculated by the BTC price when the funds were last moved. For example, if a wallet contains 1 BTC last moved in June 2019, calculate 1 BTC as $14,000, the BTC price at that time.
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Glassnode’s team explains:
“The capitalization made values different parts of the supplies at different prices (instead of using the current daily closing). Specifically, it is calculated by valuing each UTXO at the price of the last time it was moved.
The statistic that reaches a new high can be understood in two ways: many new investors are entering the cryptomarket, so it may mark a local high or it may simply be a medium-term upward trend.
In February 2020, the price of Bitcoin rose to $10,550. The Bitcoin futures market, especially the Bitcoin market, saw an increase in daily trading volume and an increase in open interest as trading activity increased rapidly. BitMEX saw its open interest, the total amount of long and short contracts, rise above $1 billion.
Bitcoin’s capitalization reached a record high in February 2020, possibly because many investors were buying BTCs in the region of $9,000 to $10,000, transferring them from exchanges to portfolios. Over the next two months, BTC experienced one of the steepest declines in its history, mainly due to the maximum uncertainty that followed the global stock market crash.
But the metrics can also be assessed as an upward trend that may indicate a gradual build-up. Bitcoin trader Luke Martin said:
“The amount of dollars buyers invested in BTC has just reached a new all-time record. The realized capitalization measures the value of all currencies at the price of the last transaction. The price isn’t there yet, but the conviction is.
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Bitcoin is at a crucial point, as statistics showWhile Crypto Trader realized capitalization is at a new high, the largest upward adjustment to the difficulty of mining Bitcoin in more than two years occurred in June, the number of long-time BTC holders reached a four-year high, and option market volume rose to unprecedented levels.
Record figures across several statistics and indicators suggest that Bitcoin is at a crucial point and the next few weeks are likely to be critical for BTC’s medium-term price trend.