Bitcoin has been trading in a crab for months. According to data from Glassnode, this could change soon.
Bitcoin’s market capitalization is now over $ 1 trillion. But as we have already written several times, the market cap does not paint a really meaningful picture of the current market situation. Rather, it is a guideline. A new calculation of market capitalization is intended to remedy this: the so-called Realized Cap.
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The Realized Cap tries to subtract coins that have been lost. After all, Satoshi’s famous Million BTC are still included in the calculation of market capitalization – although they are not available to the market at all. The idea behind it is simple. Instead of multiplying the current Bitcoin rate by the amount in circulation, you multiply each UTXO by the date of its last movement. Satoshi’s coins are included in the calculation with 0 US dollars, as they have never been moved and the price was zero when they were created.
As Rafael Schultze-Kraft, CTO of Glassnode, writes on Twitter, the current Realized Cap paints a bullish picture. Because within the last six months alone, the realized cap has doubled and is currently at 370 billion US dollars. In other words, a fair amount of fresh capital has poured into the Bitcoin market recently.
A look at the USA proves that institutions are showing increased interest in digital gold. More precisely on Coinbase Pro. There, investors withdrew 12,354 BTC on May 7, taking almost $ 700 million off the market.
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A “one-time” event as analyst Lex Moskovski comments.
Dogecoin party over soon?
The course of the Memecoin Dogecoin (DOGE) is less healthy – at least according to star investor Mike Novogratz. Across from Bloomberg says the founder of Galaxy Digital:
It’s very dangerous [in DOGE] to be invested. It’s a bubble. As easy as Dogecoin can go up, it can fall too.
The investor explains the price performance on the one hand with the ever-increasing meme culture and on the other hand with the hype about supposedly limited assets. Due to the expansionary central bank policy, investors are increasingly pouring into assets that are naturally scarce. This includes baseball trading cards, stocks but also crypto currencies such as DOGE.
As Novogratz correctly points out, however, the high prices of many Altcoins such as Dogecoin, Ethereum Classic (ETC) and Bitcoin Cash (BCH) can hardly be justified. Only the hype drives the prices higher and higher – until the bubble bursts.
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