Bitcoin’s ‘realized’ price hits new all-time high

Bitcoin’s realized price hit a new all-time high, while Ethereum’s realized price hit a 22-month high.

Bitcoin’s “realized” price hit a new high of $6,903, according to crypto analytics firm Glassnode . Bitcoin’s previous high “realized” price was $6,000 in early August, when supply was more evenly distributed among holders.

Glassnode also reported that Ethereum’s ‘liquidity’ price hit a 22-month high from $257 on November 14, 2020.

Meanwhile, Bitcoin is trading at $16,000 today, up 1.26% in the last 24 hours. Ethereum’s price is virtually unchanged. Its price is currently at $456, up 0.06% in the same period.

The “realized” price, which is different from the transaction price, comes from the “realized market capitalization” alternative metric proposed by crypto data company Coin Metrics.

Realized market cap calculates the total value of the Bitcoin network by summing up all Bitcoins multiplied by the time of the last recorded transaction. The idea is to exclude all Bitcoins in long-abandoned wallets from this calculation.

The time-sensitive aspect of realized market cap aims to provide more reliable information about the network as a whole by discounting Bitcoins that are out of circulation.