Bitcoin’s Realized Capitalization Reaches Record $1.05 Trillion Despite Price Decline
Bitcoin’s realized capitalization has increased to a record $1.05 trillion, despite a 12% drop in the spot price from its peak near $124,000. Key points include:
- Realized cap measures value based on the last transaction price of coins.
- Market capitalization declines with falling spot prices, while realized cap adjusts only when coins are spent.
- Dormant holdings and long-term investors stabilize realized cap, reflecting true investor conviction.
- Previous bear markets saw realized cap decline by up to 20%, while in 2022 it dropped around 18%.
- The current market shows resilience, absorbing volatility without significant drawdowns in realized cap.