According to a recently published report by crypto data and analysis firm Coin Metrics, most of the boomers who entered the Bitcoin market in its earlier days, have already sold their funds for what we can only assume were heavy profits, and may have left the market.
This report was published on the heels of a recent report which showed that Bitcoin’s realized valuation hit a new all-time high of $100 billion about a week ago, on Friday the 23rd of August.
What is Realized Capitalization?
The realized cap is a metric that seeks to properly value the Bitcoin market with a direct focus on the assets which are actually being traded. The metric pretty much take into account the price of Bitcoin at the particular time it was last moved instead of the more traditional market capitalization which is calculated by multiplying the Bitcoin price by the total number of coins available.
Realized cap seems to be a more accurate measure of the state of the market as well as its value since it can take into account lost coins as well as coins that have been stagnant and unmoved for a long time. Coin Metrics explains this further saying:
“So if a coin was last touched for $2,500 in 2017, that particular coin would be priced at $2,500 instead of the current market price.”
Coin Metrics, through realized capitalization, has now reported that a large number of coins which were purchased in Bitcoin’s early days, were already withdrawn when the coin hit its all-time high.
“BTC’s realized cap was composed of a much higher proportion of coins that had last been exchanged in the $13,000-$20,000 range. This signifies that capitulation is most likely almost complete, since a majority of coins that were bought above $13,000 have now been sold.”
Regardless, Bitcoin is Healthier
Coin Metrics then went on to assert that the Bitcoin market might now have more stability than it used to because realized capitalization has shown that most hodlers who are currently trading Bitcoin most likely entered the sphere when the price was in the “$3,000 to $12,000 range”.
Bitcoin hasn’t been around $3,000 for more than a long time now so this could only mean that current traders are in the market for the long haul and aren’t exactly looking to dump anytime soon. This trend is advantageous to the market, ensuring better strength and as Coin Metrics puts it, a “healthier base.”
