Bitcoin’s Realized Cap Increases as Expenditure Activities are Driven by Young Coins
Bitcoin’s price has been hovering around $113,000, with its realized cap increasing and expenditure activities mainly driven by coins under three months old. The data suggests a positive realization, with short-term owners floating around the breakeven point and older supply showing little signs of distribution. According to recent data, Bitcoin closed at $113,599 on August 20, marking a 7.9% decrease over the past week, but still showing a 1.7% gain over the past 90 days.
The spot turnover has cooled down, with a fictional volume of $2.68 billion per day over the past week, below the 30-day average. However, this moderation in activity does not necessarily indicate panic selling, as on-chain flows suggest proper profit realization rather than stress. The realized cap, a measure of the total cost base of all coins in circulation, has increased by $8.98 billion over the past seven days and $34.85 billion over the past 30 days.
Profit Realization and Miner Emissions
The Net Realized Profit/Loss (NRPL) shows a seven-day sum of $8.59 billion and a 30-day sum of $33.25 billion, which closely aligns with the realized cap’s growth. The small remaining gaps between the two metrics correspond to the dollar value of new block rewards. With current subsidy rates of 3.125 BTC per block, around 450 BTC are issued daily, worth approximately $366 million over the past seven days and $1.58 billion over the past 30 days.
The Spent Output Profit Ratio (SOPR) metrics confirm the image of steady profit realization without signs of distress. The covered SOPR is 1.028, with a seven-day average of 1.033, indicating that total spendings have consistently occurred at a profit over the past 30 days.
Short-Term and Long-Term Holder SOPR
The short-term holder SOPR is 0.995, with a seven-day average of 1.002, and 24 out of the last 30 days above 1. In contrast, the long-term holder SOPR is significantly higher at 1.718, with every day over the past 30 days above 1 and an average of 2.21. This suggests that the long-term supply that is moving is doing so with very high profit multipliers, which is more indicative of regular trimming than broad distribution.
The data on coin age distribution shows the dominance of young coin movement. On August 19, 94.95% of all spending outputs came from coins under three months old. The emigration on the same day was the largest component, with 0-1 day coins making up 83.27% of the total amount, followed by 1-7 day coins at 7.49%. The 1-3 month band only contributed 1.42% to the spent supply.
Destroyed Coin Days and Net Unrealized Profit/Loss
The lack of long-term holder distribution is reinforced by the destroyed coin days, which are almost 15.6 million, corresponding to the 30-day median without two standard deviations over the past 180 days. Historically, large spikes in destroyed coin days signal the movement of very old supply in the market, often before a distribution phase. The absence of such spikes indicates that older coins remain dormant despite profitable conditions.
The Net Unrealized Profit/Loss (NUP) is 0.537, with a 30-day average of 0.561, which continues to put the market in the faith/rejection zone. This means that a large proportion of the supply is being held in profit, corresponding to the continued profit and supply turnover without broad surrender.
For more information on Bitcoin’s SOPR and its implications, visit https://cryptoslate.com/bitcoin-sopr-shows-consistent-profit-realization-despite-price-pullback/
