Short term Bitcoin The behavior of holders is a critical parameter closely monitored by many participants in the BTC market.
According to an analyst from CryptoQuant, short-term BitcoinObserving the percentage of realized market value held by holders, the Realized Cap Hold Wave metric effectively shows the distribution and allocation of wealth and assets in the crypto market.
Realized market value, often called “realized cap”, is a variation of normal market value. One cryptocurrency It values each unit (like UTXO – Unspent Transaction Output in Bitcoin) based on its price when it was last moved, as opposed to its current value.
For example, if a coin was last moved when its price was $1000 and has not been moved since then, that coin would still be valued at $1000 in the realized market cap calculation, even if the current price is $2000.
According to analysts, price bottoms typically occur in Bitcoin when short-term wallets sell a significant portion of their holdings in response to bearish market pressures. This leads to a significant increase in realized market value among long-term loyal wallets. The opposite situation is observed at price peaks.
In the 2015 bull cycle, short-term interest occurred in the first nine months of the cycle. BitcoinThere was an increase of approximately 11% in the realized market value held by wallets. This rate fell to 8.6% in the 2018-2019 cycle and currently stands at just 6% in 2023.
According to the CryptoQuant analyst, in the 2023 price cycle, only a small portion of Bitcoins purchased by short-term holders will be held until the long term, as well as among new investors. BitcoinIt shows that the level of confidence and hope for buying and holding has decreased significantly.
*This is not investment advice.
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