For 2021, $ 220 billion of profit was realized in the Bitcoin network, which is more than 100% higher than the realized network capitalization at the beginning of the year.
Below is a chart of net realized profit / loss for the day on the network:
The realized capitalization reflects the total price paid for each “coin” (technically: UTXO) on the blockchain, rather than simply multiplying the circulating supply by the exchange rate.
Change in realized capitalizationshows how much capital has flowed into the network since the beginning of the year, as coins have been aggressively flowing into the hands of a new class of Wall Street investors who have become more active in monetary assets.
One of the most optimistic factors from the startyear is that the realized price of bitcoin significantly exceeded the market price, with the realized price increasing by 127%, while the spot price increased * only * by 57%.
This led to a decrease in the MVRV ratio(ratio of market value to realized value) from 3.14 at the beginning of the year to 2.22 today. Investors can perceive MVRV as a measure of “fair value,” which means that in relative terms, bitcoin is cheaper today at $ 45.5K than it was at $ 29K at the beginning of the year.
It should also be noted that the market price is veryrarely drops below realized (currently it is about $ 20.9 thousand), and those who are trying to wait for this event may miss the opportunity to capitalize on exponential growth.
The chart below illustrates the few periods in Bitcoin's history when it has traded below its realized price, that is, periods of literally “liquidation” of stocks.
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