The implementation of the hat can provide tips on the next steps of Bitcoin

The CEO of on-chain analytics firm CryptoQuant claims that the Bitcoin bull market may be over, but another analyst questioned this view.

The CryptoQuant CEO made this judgment based on the "Realized Cap" model. This model assumes the actual value of Bitcoin circulating, which is the price it was when it was last traded on the blockchain. It reflects the total investment cost of all Bitcoin holders, in contrast to the market capitalization calculated simply at the current price.

The growth of market capitalization has been achieved is not always proportional to the growth of market capitalization. The CEO of CryptoQuant believes that the difference in growth rates between the two becomes negative, indicating that inflows fail to push up prices, indicating that Bitcoin is bearish.

However, analyst James Van Straten has a different opinion. He analyzed the realized market value and its reduction percentage in Bitcoin’s history:

The chart shows that in historical bear markets, the realized market cap usually drops sharply as investors are forced to sell at prices below the buy price. But for the moment, despite the recent decline in prices, the market value has not dropped significantly, indicating that investor confidence remains, and is even continuing to grow. "Bear markets usually don't start with confidence and inflows," Van Straten noted.

Therefore, it remains to be seen whether Bitcoin has entered a bear market.

Bitcoin price fluctuations

At the beginning of the week, Bitcoin price fell nearly 7% to $76,500.

The above is the detailed content of The implementation of the hat can provide tips on the next steps of Bitcoin. For more information, please follow other related articles on the PHP Chinese website!