The “delta capitalization” model of Bitcoin may suggest that around $15k could be a possible bottom for the crypto’s price.

Past Delta Cap Trend Shows Bitcoin May Still Face More Decline Before A Bottom

As explained by an analyst in a CryptoQuant post, the BTC market cap is now below the realized cap, but still above the delta cap.

Before taking a look at the data, it’s best to first get a basic grasp of the three major capitalization models for Bitcoin.

The normal market cap is calculated by just taking the total number of coins currently in circulation and multiplying it by the price of BTC right now.

The “realized cap” works a bit differently; instead of multiplying all the coins by the same price, this model weighs each coin by the price it was last moved at.

Related Reading | USDC Exchange Reserves Rise As Investors Escape From Bitcoin

For example, if there are 2 BTC in circulation and the current price is $19k, then the normal market cap is simply $38k. However, if one of these coins was last transacted at, say, $15k, and the other at $19k, then the realized cap would be $34k instead.

Now, the Bitcoin “delta cap” is defined as the difference between the realized cap and the average of the market cap. The average of the normal market cap here is taken over the entire history of the crypto (and it’s naturally a moving average).

The below chart shows the trend in the different market caps for BTC.

Bitcoin Delta Cap

The normal market cap still seems to be above the delta cap at the moment | Source: CryptoQuant

As you can see in the above graph, the Bitcoin market…

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