{"id":514157,"date":"2022-12-29T18:00:12","date_gmt":"2022-12-29T23:00:12","guid":{"rendered":"https:\/\/uniquehot.com\/?p=514157"},"modified":"2024-06-11T12:09:21","modified_gmt":"2024-06-11T12:09:21","slug":"bitcoin-under-realized-price-163-days","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bitcoin-under-realized-price-163-days\/","title":{"rendered":"Bitcoin Now Under Realized Price For 163 Days, Here’s How This Compares Historically"},"content":{"rendered":"
On-chain data shows Bitcoin has now been below its realized price for 163 days in this bear market; here’s how this compares with previous cycles.<\/p>\n
According to CryptoQuant’s year-end dashboard<\/a> release, the bear market would be over if BTC reclaims this level. To understand what the “realized price” is, the “realized cap” must be looked at first. The realized cap<\/a> is a capitalization model for Bitcoin that aims to provide a sort of “real value” for the crypto.<\/p>\n Unlike the usual market cap, which simply values each coin in circulation using the current BTC price, the realized cap prices each token at the same price it was last moved. For example, if 1 BTC was bought at $20,000, but the price has now changed to $16,000, the market cap will consider it valued at $16,000. The realized cap, however, will say its true value is $20,000.<\/p>\n Now, if the total realized cap of Bitcoin is divided by the total number of coins in circulation, a “realized price<\/a>” is obtained. This price signifies the cost-basis of the average coin in the market (that is, the price at which investors acquired the average coin at). Here is a chart that shows the trend in the BTC realized price over the entire history of the asset:<\/p>\n <\/p>\n As the above graph displays, the normal price of Bitcoin has been below the realized price for a while now. Historically, BTC has spent very little time in this region, as only the worst phases of a bear market<\/a> usually pull the coin below the level.<\/p>\n From the chart, it’s apparent that In the 2011-2012 bear market, BTC spent 158 days under the realized price. Then, in 2014-2015, the coin spent a whopping 276 days in this zone.<\/p>\nThe BTC price seems to have been below this metric in recent months | Source: CryptoQuant<\/a><\/pre>\n