It is often applied in investor behavior analysis as well as identifying market cycles. A rise in realized price is generally a positive development which indicates heightened capital inflows as new investors are purchasing Bitcoin at elevated price levels. Furthermore, an increased realized price also signals a reduced selling pressure from long-term holders despite significant price gains which is a strong representation of market confidence. However, Grizzly explains that a widening gap between market price and realized price as presently seen traditionally signals short-term overheating that indicates an unsustainable price growth driven by speculation with no underlying fundamentals. Albeit, the analyst also highlights that historical data has shown Bitcoin to witness similar widening gaps in previous bull seasons with sustained price growth.
Bitcoin Realized Price Up ‘Only’ $37,000 Amidst Charge To $100,000 In a Quicktake post on CryptoQuant, an analyst with username Grizzly shared an intriguing insight on Bitcoin’s realized price following the asset’s recent price surge. According to Grizzly, as Bitcoin moved from $60,000 to almost $100,000 in the past two months, its realized price only rose from $31,000-$32,000 to $37,000 indicating a widening gap between both values which produces multiple implications.
This phenomenon can be attributed to the rapid price appreciation recorded in a typical bull run. Therefore, the current widening gap between Bitcoin’s realized price and market price may likely bear no influence on the asset’s present bullish trajectory. Related Reading: Is $135,000 Bitcoin’s Current Ceiling?
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