Short-term currency holders contribute to $11 billion over spending in Bitcoin market
According to CryptoQuant, there has been a significant decrease in the realized cap of Bitcoin due to the over spending by short-term currency holders. The realized cap is a measurement of the value of a cryptocurrency based on the amount that is actually being used on the network. This measurement takes into account lost or unmoved currencies on the network, and removes them from the overall value.
CryptoQuant’s analysis found that the market cap of Bitcoin is significantly higher than its realized cap. This suggests that many Bitcoin holders may be making a profit at any given moment, but this profit may not be realized until they sell their Bitcoin. The over spending by short-term currency holders has led to a decrease in the realized cap, as they are selling off their Bitcoin in large amounts.
The report by CryptoQuant indicates that the main reason for the decrease in the realized cap is due to short-term currency holders who hold Bitcoin for periods of one week to one month, and then again from six months to 18 months. These holders have spent a total of $11 billion, which has contributed to the decrease in the realized cap.
This news is significant for those who are invested in Bitcoin, as it suggests that the market may be experiencing a temporary decrease in value. However, it is important to note that the long-term value of Bitcoin remains strong, and that the market is expected to recover over time.
In conclusion, the over spending by short-term currency holders has led to a significant decrease in the realized cap of Bitcoin. While this news may be concerning for some investors in the short-term, it is important to remember that the long-term value of Bitcoin remains strong. As with any investment, it is important to take a long-term perspective and not be swayed by short-term fluctuations in the market.
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