RealizedCap

Tech spec

Brief Description: The aggregated USD value of all bitcoins held by investors based on their price when last moved.

RealizedCap represents the aggregated value in USD of all bitcoins at the price they were valued the last time they moved. This metric is a variant of market capitalization but focuses on bitcoins that have been actively used in transactions, giving insights beyond standard marketcap figures.

Metric variants

• _lth: RealizedCap restricted to Long-Term Holders (age ≥ 155 days).
• _sth: RealizedCap restricted to Short-Term Holders (age < 155 days).

Interpretation RealizedCap can be a potent tool to gauge market valuation and participants behavior. A rising RealizedCap suggests new entries of capital a fuelling the market, implying the surge of new demand and the higher reavaluation of coins. A decreasing RealizedCap suggests exits of capital from the market, implying a lack of demand and the lower reavaluation of coins.

Advanced Explanation RealizedCap is calculated by totaling the value of each Bitcoin at its last movement price. It differs from the standard market capitalization, which multiplies the current price of Bitcoin by the total supply, regardless of when each coin last moved. It can be divided into two categories based on the holding period: those held by Long Term Hodlers (LTH) and those by Short Term Hodlers (STH), which are separated by a threshold of 155 days.

The formula for calculating RealizedCap for each UTXO (unspent transaction output) is:

RealizedCap = Σ (value of each UTXO * price of Bitcoin when the UTXO last moved)