Is Bitcoin Near Top Yet? What Glassnode’s Price Multiplier Model Says

Glassnode’s model for tracking the “price multiplier” effect of Bitcoin suggests that the cryptocurrency may not be near its top yet. The model, known as the “Realized Capital to Valuation Change Ratio,” measures the capital flow into Bitcoin’s “Realized Cap” for every unit change in market cap. The Realized Cap is based on the assumption that the real value of each Bitcoin in circulation is the price at the time it was last transferred on the blockchain. According to the model, the current multiplier effect of Bitcoin is around 4 to 5 times, meaning that for every $0.20 to $0.25 going into the realized cap, the market cap increases by $1. This suggests that there is still room for Bitcoin to grow before reaching a potential top. Additionally, the chart shows that the multiplier has generally increased during bull markets and decreased during bear markets. The historical pattern indicates that the current Bitcoin multiplier is relatively low, implying that there is potential for further growth.