Dec 04, · He said that he thinks BTC’s market cap is undervalued, relative to other asset classes. Bitcoin Once Again Backed by Paul Tudor Jones. Bitcoin has seen a strong rally over the past few months on institutional interest in the cryptocurrency. The coin currently trades just . Dec 19, · Bitcoin has a current market cap of about $ billion, while that of gold's stands at roughly $10 trillion. This week the cryptocurrency gained Author: Shalini Nagarajan. Aug 20, · Bitcoin Dominance Index – And Why It’s A Truly Misleading Metric Bitcoin, from the metrics of value, market capitalization, and performance lead a lot of its ardent supporters to profess the underlying dominance of it as a cryptocurrency compared to its rivals. This remains the case when anyone brings up the dominance index, one that [ ].
Bitcoin market cap misleadingWhy Bitcoin and Altcoin Market Caps are Misleading
On-chain demand and other metrics suggest that the rally was driven more by institutional hedge funds, family offices, and money managers. Hileman expects to see continued buy-in from retail and Wall Street investors going forward, rather than corporates. That's because it is harder for bigger players to participate than professional investors who already have accounts and easy access to major exchanges, he explained. As for the US dollar, the researcher expects the world's most popular reserve currency to be digitized sometime in the next five years.
The status quo is working well for the dollar because it is dominant through the SWIFT mechanism and the corresponding banking system, he said. The US government can also raise debt at attractive interest rates, supporting the dollar's status. But a competitive challenge lies in the crypto space and in the rise of stablecoins. Shalini Nagarajan. Although the bitcoin rally was largely driven by institutional investors, he expects to see continued buy-in more from retail and Wall Street investors going forward.
The researcher expects the US to digitize the dollar, but not too soon as he said "the Fed is happy with the way the world is. Visit Business Insider's homepage for more stories. Going forward, investors need to consider metrics other than market cap. Much of the data available for different coins does not give you the whole picture, so it is important to use a combination of different data points when comparing different crypto assets.
When looking at market caps specifically, it also makes sense to check the trading volumes as well. A coin with more liquidity should generally have a more legitimate market cap. The issuance rate and distribution of supply should also be investigated. Of course, nothing beats looking at the actual utility provided by a particular coin and estimating the room for growth that is available in that particular niche.
Subscribe to the Bitcoin Market Journal newsletter here! Sign up for our newsletter below, and keep us honest. Fudging the Numbers The best way to understand the problem with the coin market cap metric is through an example with a crypto token that does not actually exist.
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