As Bitcoin goes above $10,000 again today, analysts are looking at some of those metrics that indicate higher prices for Bitcoin in the future.
One of those is Bitcoin’s market capitalization – a key indicator of the size of the Bitcoin market.
As institutions and individual investors pile on, we’ve seen Bitcoin market cap rise significantly.
Some are now using a measure called ‘realized market cap’ to analyze Bitcoin, in addition to scrying hash rates and trading volumes.
William Suberg at Cointelegraph reports today that Bitcoin’s realized market cap topped $100 billion yesterday.
“The achievement is just one more in a string of near-constant records for Bitcoin, which recently posted all-time highs in areas such as hash rate and daily trading volumes,” Suberg writes.
Suberg notes that the realized market cap is calculated by multiplying each Bitcoin’s price by the size of every trade.
He also points out that taking realized market cap into consideration, we get a potential figure of 90% for Bitcoin’s market dominance in the industry. That’s another metric that analysts are paying attention to as altcoins come under pressure and Bitcoin’s popularity grows.
With so much of the market going toward Bitcoin, coins like ZCash, Ether and even Bitcoin Cash may lose ground. However, Suberg notes that Binance coin is faring relatively well. We reported in past weeks that Binance is looking to open a new U.S. exchange to take advantage of new interest in crypto, while many other exchanges have pulled out of U.S. markets such as New York
“The in-house token of crypto exchange Binance is up 44% against Bitcoin since August 2018,” Suberg writes.
New details continue to emerge about the exchange’s expansion.
“BAM Trading Services will operate the U.S. platform, which is overlaid on Binance’s wallet and matching engine technologies,” wrote Daniel Kuhn at Coindesk Aug, 9. “The exchange aims to bolster its compliance and security practices through partnerships with the software provider Chainalysis and KYC/AML tool provider IdentityMind.”
Look for growth in Binance coin, and for BTC to take off as interest grows. Other coins may fare worse in this fall’s market activity.
