- BTC’s realized capitalization for newly acquired coins continued to encounter resistance at 8%.
- The value of the coin has risen by almost 10% in the past month.
The realized capitalization of short-term Bitcoins [BTC] (less than a month) has reached a new recovery level after a substantial decline. Still, according to a new one report by CryptoQuant analyst Binh Dang it continues to encounter resistance.
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Dang reviewed recently acquired BTCs (coins consisting of 24 hours to 1 month) and found that the realized capitalization of this age range was always affected by the coin’s price fluctuations.
In previous cycles, growth in the BTC market has been characterized by the consistent increase in realized capitalization within this group. According to Dang, this indicated a wave of new investors or increased capital inflows for accumulating new, unspent productions.
While the metric has recovered somewhat in the current market in recent months, it “has not crossed the <8% threshold.”
Source: CryptoQuant
Furthermore, the analyst found a similar pattern of low recovery in realized capitalization in USD for this age range. He noticed:
“During the trough in late 2022, this group’s Realized Cap fell to ~$19.8 billion and recovered to ~$44 billion as BTC peaked at $30,000-31,000. However, it has since fallen back to ~$20 billion and is recovering slightly.”
Source: CryptoQuant
The current positions of both measures showed that while the leading coin BTC is in a recovery phase, the recovery remains fragile and a number of factors, including macroeconomic and geopolitical issues, have continued to derail it.
This is clearly visible in the sideways movement of the coin in recent months and the significant recovery faced by the $30,000 price level.
According to Dang, this meant that the BTC market would likely remain uncertain for the rest of the year.
“The market is likely to remain uncertain if this data does not show significant and positive trends from now until the end of the year. Volatility will be unpredictable, so new entrants should not expect sustained and strong price increases like in the first half of this year.”
BTC in the past month
BTC was exchanging hands at $27,592 at the time of writing. According to data from CoinMarketCapthe value of the currency has risen by 7% in the past month.
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During that period, futures Open Interest also increased. When BTC open interest increases, it means that the total number of BTC futures contracts that have not yet been settled has increased.
It indicates increased demand for BTC over the past month and more investors opening new positions.
Source: CryptoQuant