Insights

Second worse drawdown in Bitcoin history in terms of realized cap

exchange68September 13, 2024

0 0 1 minute read

Definition

Market capitalization (or network value) is defined as the product of the current supply by the current USD price.

Realized Cap values different parts of the supplies at different prices (instead of using the current daily close). Specifically, it is computed by valuing each UTXO by the price when it was last moved.

Quick Take

Looking at the difference in drawdown from an all-time high (ATH) between market cap and realized cap.
The 2022/23 bear market has seen the realized cap drawdown by 18.9% — the second worse drawdown historically.
Market cap drawdown was the fourth worse at 76.9% — establishing a lower low.

Drawdown from ATH realized cap: (Source: Glassnode)

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

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