Realized Bitcoin price hits record high

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The realized bitcoin price, measuring the value of every last UTXO moved to calculate the price of bitcoin, has reached its highest level on record.

The following is taken from a recent edition of Deep Dive, Bitcoin Magazine’s high-end market newsletter. To be among the first to receive this and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

The realized price of bitcoin broke its all-time high reached on May 12 earlier this year, with the metric currently standing at $ 20,200. Realized Price measures the value that each UTXO on the network last moved to calculate the price of bitcoin.

While bitcoin’s market cap is calculated by multiplying the circulating supply by the spot price, the realized cap takes each coin in the market and uses the price at which the coin (or more technically: UTXO) last moved. times in the calculation. So the realized price simply takes the realized capitalization and divides it by the circulating supply.

The realized price can often provide more signal as to investor activity on the network, as it quantifies that bitcoin is actually trading hands, and the price is not simply rising on the margin through derivatives markets or through the whale washing business.

In Daily Dive # 022, we covered the trends surrounding the realized price as bitcoin fell 50% from its all-time high, pushing down the realized price with it, as the 2021 investor class capitulated by major way.

When looking at the realized price history, interesting patterns emerge in different phases of the market, and sustained declines in the realized price are not a positive sign.

Chart from The Daily Dive # 022 – A Deep Look at Chain Accumulation

It is very possible that the realized price follows a similar pattern to the cycle of 2013, where the realized price briefly started a downtrend before recovering with the start of the second act of the infamous double bubble. In our view, this is the most likely case, rather than a multi-year bear market followed by re-accumulation. – The Daily Dive # 022 – An In-Depth Look at Chain Accumulation

With the realized price increasing to record highs and bitcoin still being around 27% lower than the ATH price set in April, the market to realized value ratio is at much more attractive levels.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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