RealizedPrice

Tech spec

Brief Description: The average on-chain acquisition cost of all Bitcoin in circulation.

The RealizedPrice refers to the average acquisition cost of Bitcoin, calculated by totaling the value at which each coin was last moved and then dividing by the current total supply. In essence, it reflects the capitalized cost for the experienced investors based on when coins were last transacted.

Metric variants

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

Interpretation RealizedPrice measures the average cost basis of investors and can be used to assess market sentiment. A rising RealizedPrice indicates that newer coins acquired at higher prices are becoming a larger part of the supply, which can suggest a lower bound for Bitcoin's price. Conversely, a stagnant or falling RealizedPrice suggests that the cost basis is not increasing, potentially indicating a lack of market activity or accumulation at lower prices. During bull market drawdown, the RealizedPrice tends to offer a robust support to the Bitcoin price if short term confidence is high. During bear market rallyes, the RealizedPrice tends to offer a robust resistance to the Bitcoin price if short term confidence is low.

Advanced Explanation The RealizedPrice is the representation of the "fair value" of the market, the price at which the average investor in holding his coins. It helps to determinate a key psychological level that acts as financial baseload of the market.

It's computed by aggregating the value of each coin at the time it was mined or last moved and dividing by the current circulating supply of Bitcoin. Two separate variants of RealizedPrice take into account the age of coins: one for coins held for more than 155 days (LTH version) and another for those held for fewer days (STH version).

To express this mathematically:

RealizedPrice = (Sum of each coin's value at the time of last move) / (Current circulating supply)