Value of virtual currencies…

Value of virtual currencies…

… sinks $52 billion in a single week

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Bitcoin’s ‘realized market capitalization’ at an all-time high as price continues to suffer following Libra’s Senate hearings

Bitcoin’s massive plunge in valuation recently has shook the cryptocurrency market. The world’s largest cryptocurrency falling below the decisive $10k support following Libra’s ‘interrogation’ before the United States’ Senate Banking Committee has many analysts doubting their bullish predictions. However, despite the fact that most short-term metrics were bearish, the king coin’s ‘realized capitalization’ was at […] The post Bitcoin’s ‘realized market capitalization’ at an all-time high as price continues to suffer following Libra’s Senate hearings appeared first on AMBCrypto.
AMBCrypto

Bitcoin ‘Realized Market Cap’ Hits Record High Despite Flash Crash

Bitcoin investors are paying more per coin than at any time in history – despite the Bitcoin price dropping to half its all-time highs. Bitcoin Realized Cap Hits $93 Billion That was the conclusion in new analysis of an underreported metric this week, which casts light on genuine consumer interest in Bitcoin.  Known as realized market cap, the figure revolves around two values: the price at which each bitcoin last traded, and how many coins were involved in each trade. The resulting figure when multiplying the values gives a fairer representation for cryptocurrencies than traditional market cap, data resource Longhash concluded in the analysis.  For Bitcoin, which now hovers at under $10,000, the realized cap figure is higher than it has ever been – at $93.45 billion. “What does this mean for Bitcoin? It means that the cost basis for BTC investors is higher than it’s ever been, and that the average purchase price paid by a Bitcoin holder is somewhere in the range of $5,000-$6,000 per coin,” Longhash summarized. In 2019, multiple indicators gave increasingly bullish forecasts for bitcoin’s rebound from the 2018 bear market. This week, however, the mood changed, with analysts now warning that a considerable chunk of this year’s gains could yet evaporate. Realized cap therefore, stands as an increasingly isolated voice in a bearish climate suggesting bitcoin’s underlying health remains intact, despite price woes. “It also helps put 2017 into context,” Longhash continued.  Despite prices rising as high as $19,000, the reality is that almost no trading occurred at those levels. Most investors either held on for the whole bubble, or traded at far lower prices on either side of the peak. Bitcoin Tipped To Squash Altcoins BTC trading volumes in fact hit a daily record on several occasions last month, as markets took advantage of a sudden parabolic phase which culminated in BTC/USD reaching $13,800. At the same time, Bitcoin’s dominance in terms of traditional market cap has also reached highs not seen since early 2017.  Recently hitting 67%, the diminishing presence of altcoins sparked several warnings that Bitcoin would retain its presence at other assets’ expense. Veteran trader Peter Brandt referred to the phenomenon as the “Dot Com bubble” for altcoins, while ongoing research continues to support the idea that alt-investors will bare the brunt of the market retraction.  “Most of the damage of decline will occur to altcoins,” Brandt repeated Tuesday as he warned the total cryptocurrency market cap would shed 80% of its parabolic advance. What do you think about Bitcoin’s realized market cap? Let us know in the comments below! Images via Shutterstock, Longhash The post Bitcoin ‘Realized Market Cap’ Hits Record High Despite Flash Crash appeared first on Bitcoinist.com.
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