Bitcoin has yet again hit another milestone!
According to Coinmetrics.io, bitcoin has reached $110 billion realized market capitalization. Additionally, bitcoin soared by 5% on Monday morning after hovering slightly above $10k for the most part during the weekend whilst the Chinese yuan hit an 11- year low.
Bitcoin Hits A Whopping $100 Billion Realized Market Cap
In the last few weeks, bitcoin’s realized market cap had been hovering around 90 billion before finally breaking to $100 billion on August 25. This new feat adds to the basket of the many achievements that bitcoin has recently registered. Not too long ago, BTC registered ATHs in terms of its daily transaction volume and hash rate.
Notably, the realized market cap is different from the standard market cap in terms of how it is calculated. The realized market cap is calculated by multiplying the price of each bitcoin that exchanged hands by the volume of the trade. The result is a value that’s unbiased in showing the extent of bitcoin’s dominance according to some analysts.
Nic Carter, Coin Metrics co-founder commented on this newly-released data stating:
“As a measure of economic significance, I much prefer it to ‘market cap’, which counts as relevant the 15-20% of coins which are likely permanently lost. By realized cap’s estimate, bitcoin is the biggest it has ever been (but much smaller than the $300b mkt cap implied at peak.”
Nick Szabo, a seasoned cryptographer, mentioned that the 100 billion realized market capitalization shows that bitcoin looks very promising despite low volatility witnessed.
“The long-term chart reflects the superior deep safety, global seamlessness, and monetary soundness of Bitcoin.”
BTC Is About To Explode! – Max Keiser
Today, bitcoin surged by more than 5% within a few minutes to hit a 5-day high above $10,550 in the early hours. On the other hand, the Chinese yuan extended its plunge this morning. In the onshore market, the yuan dropped to 7.1500 per dollar to mark an 11- month drop since 2008. This significant drop in the yuan stemmed from the re-escalated trade wars over the weekend.
Max Keiser, permabull and the host of Keiser Report on RT noted this bitcoin price surge and opined:
“Bitcoin is a coiled spring about to explode higher.”
BTC has however retreated to the $10,300 zone and is trading at $10,330.81 at press time marking 1.58% gains in the last 24 hours.
Apart from bitcoin’s growing ecosystem, another reason BTC’s price could be ready to ‘explode’ is the ongoing US-China trade war.
US-China Trade War Ramifications
In case you are late to the party, on Friday, China announced that it was imposing new tariffs on US exports worth $75 billion and moments later the US President Donald Trump responded by hiking tariffs and “ordering” US companies to cut ties with China. The US president then went ahead to say he had second thoughts about not hitting China harder.
On Monday, bitcoin surged by 5% as global stocks and some national cryptocurrencies plunged. In the onshore market, the yuan dropped to 7.1500 per dollar. This drop in yuan against the US dollar was accompanied by a plunge in other regional currencies. Case in point, the Turkish Lira which flash crashed against the US dollar by around 6% on Monday.
The stock futures pared their losses after Trump said China called the United States’ “top trade people” on Sunday night to request going back to the table to discuss a deal. Trump then tweeted saying talks between the US and China are continuing.
The Dow Jones spiked, albeit the comments by Trump raised eyebrows after Hu Xijin, a journalist at Global Times, a Chinese government-controlled newspaper, said China had NOT called the United States to open a dialogue.
“Based on what I know, Chinese and US negotiators didn’t hold phone talks in recent days. The two sides have been keeping contact at technical level, it doesn’t have significance that President Trump suggested. China didn’t change its position. China won’t cave to US pressure.”
Needless to say, the US-Sino trade war is bullish for bitcoin. A weaker yuan is likely to spur capital flights from Asia to bitcoin as more investors stream to bitcoin which continues to make history every other day.