Realised cap approximates the total capital current investors paid for their coins by peering into the blockchain and using the time (and therefore price) at which the coins moved into their wallets.
Right now Bitcoin's cap is $202b for $116b of capital invested.
So all-time impact is $1.70 per dollar invested.
For the impact of the latest dollar, we need to take the current slope of the market cap (change in cap) and divide by the latest slope of the realised cap (change in money invested).
Depending on market phases it changes a lot.
I'll set aside time to create this chart, I think it's important as we see more companies like Square and MicroStrategy hedge their USD stockpiles into BTC.
Also note this method underestimates the ratio as Realised Cap is imperfect and does not cluster addresses belonging to one participant. Moving coins from hot wallet bought for $400 in 2014 to cold storage in 2018 at BTC $12k counts as $11,600 of new capital per coin.
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ELI5:
Every business operation on the network that earns revenue in BTC will sell BTC to pay for operational costs, this represents a constant sell pressure on the network.
Data presented here are the actual numbers.
This study illustrates how we can't just assume the 4 year halvening of miners sell pressure will just keep us locked into a 4 year cycle.
There are other important factors at play in 2021... The newer impacts will further dilute mining influence as the ecosystem matures.
I posted this map of the BTC supply distribution, but many asked "but what does this mean?".
Well, it says quite a lot, this is the whole ecosystem talking to us. Since people didn't see what I though was in plain sight, I'll break it down and add a bit more colour.
Bitcoin continues to distribute coins evenly. Publicly held and retail entities continue to gain more control of the supply while whales are reducing their control.
Remember the gold standard failed as a monetary standard due to centralisation of the supply
2) Retail drives macro cycles. When retail stack their sats at an increased rate, like they are doing right now, it's the fundamentals saying we are in the middle of a bull market.
I repeat; middle of a bull market. Traders in disbelief 2 months ago when this data was shown.
Ethereum supply shock well and truly at all time highs.
Looks like the market overpriced it in May but is probably underpricing it July / August.
Switching to an oscillator view of this, it's moving out of its no-brainer buy zone with the latest rally. But importantly, despite short term technicals being quite warm, it's far from over-bought on fundamentals.
Note: the latest supply burn from EIP-1559 is not accounted for in Glassnode data. But it should not impact these metrics just yet (~0.01% impact on this indicator for now). Glassnode will be rolling in EIP-1559 burn data soon.