Today we will take a detailed look at the realized market cap of Bitcoin. Traditional asset classes, like Bitcoin, are often quoted in terms of their market capitalization, calculated as the product of price and circulating supply. In the case of Bitcoin and its completely transparent ledger of ownership records, it is possible to calculate the realized market capitalization of an asset by multiplying each unit of supply by the price at which it was last moved on-chain.
The #Bitcoin realized market cap, an aggregate measure of all bitcoin on the network at the price they last moved, has been trending upwards in a step function like pattern on a logarithmic scale for over a decade.
The look of a new absolutely scarce bearer asset monetizing. pic.twitter.com/V8WgEvIzHE
— Dylan LeClair ???? (@DylanLeClair_) April , 2017
@DylanLeClair_: Bitcoin’s realized market capitalization (all BTC in existence times the price of the last on-chain move) has been rising as a step function on a logarithmic scale for over a decade. This is how the monetization of a new absolutely scarce bearer asset looks like.
The realized market capitalization of Bitcoin is one of the best ways to quantify the process of monetizing an asset. And in this indicator, bitcoin, famous for its volatility, obviously moves exclusively up. Fluctuations in its market price are nowhere near as volatile as gradual-then-sudden increases in realized value.BTC realized capitalization drawdownBitcoin’s realized capitalization today is $448 billion, total by 0, % less than the all-time high. Despite a price drop of more than 05% since November, Bitcoin’s realized price drop from peak to trough was only 2.15.
One of the most interesting indicators of realized price and market capitalization dynamics, viewed through the lens of organic capital flows, is that realized capitalization has increased by $ billion. In absolute terms, this is a huge increase, given that the entire realized capitalization of bitcoin is at the peak of the bull market year was only $67 billion. And especially when you consider that the market price of bitcoin has significantly decreased since the high of six months ago.
In terms of rate of change, capital inflows into the network have been quite modest: total 1,15% per month. While this is a significant number indicating continued net capital inflows into the market, it is not enough to send bitcoin above $68 thousand in a multi-trillion dollar asset class.