Bitcoin Has So Far Declined 24% Under The Realized Price
As pointed out by an analyst in a CryptoQuant , drawdowns below the realized price have been shrinking with each cycle.A popular capitalization model for Bitcoin is the “realized cap,” which measures the cap by weighting each coin in the circulating supply against the price at which it was last moved.
Now, from this realized cap, a “realized price” can be derived by dividing the metric with the total number of coins in circulation.
The usefulness of this price is that it signifies the cost basis of the average holder in the Bitcoin market. This means that whenever the normal price dips under this indicator, the average investor enters into a state of loss.Looks like the value of the metric has plunged in recent days | Source:As you can see in the above graph, the latest crash in the price of Bitcoin has taken the crypto 24% below the realized price, the deepest value observed in the current cycle so far.
BTC Price
At the time of writing, Bitcoin’s price floats around $16.5k, down 1% in the last week. Over the past month, the crypto has lost 14% in value.
The below chart shows the trend in the price of the coin over the last five days.The crypto continues to show stale price movement | Source:
Featured image from Traxer on Unsplash.com, charts from TradingView.com, CryptoQuant.com