UnRealizedCap_STH

Tech spec

Brief Description: The total unrealized market capitalization held by Bitcoin investors.

The UnRealizedCap_STH is a metric in Bitcoin on-chain analysis quantifying the latent, inactive portion of Bitcoin's value. It is calculated as the difference between the current Market Capitalization, the total USD value of all mined Bitcoin, and the Realized Capitalization, which reflects the aggregate value of Bitcoin when they were last moved. In essence, UnRealizedCap_STH represents the total potential profit that has not been realized by Bitcoin holders.

Metric variants

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

Interpretation When analyzing Bitcoin market trends, UnRealizedCap_STH can shed light on the sentiment among investors. A low UnRealizedCap_STH suggests investors are holding coins with little to no unrealized profit, potentially indicating a bearish market or a buying opportunity. Conversely, a high UnRealizedCap_STH implies that investors are sitting on significant unrealized gains, which could signal market tops if investors decide to realize profits, or confidence in further market appreciation. Understanding UnRealizedCap_STH can thus aid in gauging potential future selling pressure or hodling conviction among Bitcoin's most steadfast investors.

Advanced Explanation UnRealizedCap_STH is calculated by taking the difference between the Market Cap and the Realized Cap. The Market Cap is the current price of Bitcoin multiplied by the total number of coins in circulation, indicating the theoretical total value of Bitcoin. In contrast, Realized Cap values each unit of Bitcoin at the price it was last moved, rather than the current price, providing an aggregate cost basis for holders.

UnRealizedCap_STH = MarketCap - RealizedCap