In the latest weekly report from on-chain analysis firm Glassnode, opinions emerged that demand for Bitcoin has slowed recently. So, what is happening with Bitcoin?
Bitcoin Comments
The latest report from Glassnode highlighted recent data pointing to Bitcoin’s Realized Cap. “Realized Cap” in BTC indicates an on-chain capitalization model that considers the value of each circulating cryptocurrency at the spot price it last traded on the blockchain.
Since the last transaction price seen on the network for any coin is likely from when it last changed hands, it can be said that the price at that time equals the current cost. Accordingly, the Realized Cap indicates a total value for the cost basis on behalf of the entire circulating supply.
In other words, this model reveals the total capital investors used to purchase Bitcoin. Therefore, the metric is used to track whether capital is entering the cryptocurrency. The graph presented by Glassnode showing the trend in Bitcoin Realized Cap over the past few years is below:
As seen from the graph above, Bitcoin Realized Cap experienced a sharp upward trend when the price moved towards an all-time high (ATH). The growth indicates that capital was aggressively directed towards cryptocurrencies.
However, recently, the metric’s outlook has shown a horizontal trend. Although the value continues to increase, it does not seem to be reaching new ATHs. Nevertheless, the recent rise appears to be much smaller compared to the previous one.
The report stated:
Currently, the rate at which new capital flows into the Bitcoin network has significantly slowed as the market absorbs the newly distributed supply.
On the other hand, the graph below more clearly shows the rate of change in capital entering the sector and how it has changed recently.
How Much is 1 Bitcoin Worth?
Bitcoin surpassed the $71,000 level yesterday, causing great excitement in the market. This was followed by a rapid price decline. As of the time of writing, the BTC price is below $70,000.
After a 0.82% drop, the price continues to trade at $69,500. BTC’s market cap is $1.367 trillion, while its 24-hour trading volume dropped by 22% to $32 billion.
