As Bitcoin (BTC), the market’s leading cryptocurrency, continues to trend lower, recent insights from industry experts highlight critical factors influencing BTC’s trajectory.
According to Ki Young Ju, CEO of market intelligence firm CryptoQuant, the current Bitcoin bull cycle may be coming to an end. This assertion is grounded in the concept of Realized Cap, a metric that quantifies the actual capital entering the BTC market through on-chain activity.
Insights From Ki Young Ju
For context, the Realized Cap metric operates on a straightforward premise: when Bitcoin enters a wallet, it represents a purchase, and when it leaves, it signifies a sale.
By calculating the average cost basis for each wallet and multiplying it by the amount of BTC held, Ju derives the total Realized Cap. This metric reflects the total capital that has genuinely entered the BTC ecosystem, contrasting sharply with market capitalization, which is determined by the last traded price on exchanges
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