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.