Bitcoin Young Supply Echoes 2022 Bear Market – What Web 3.0 Crypto Coins to Look Out For?

Recent research has argued that Bitcoin (BTC) traders are displaying behavior similar to the 2022 bear market bottom, as a feeling of uncertainty prevails.

On Oct. 9, CryptoQuant, an on-chain analytics platform, looked into a major decrease in the realized capitalization of the most active part of the BTC supply in one of its Quicktake market updates.

The rise of Web 3.0 crypto coins, Big Bear AI, and other recent AI advancements have all been major catalysts in the crypto space this week. With all these exciting developments, many are wondering when Web 3.0 will come into full effect and how it will impact the crypto market.

One-month-old BTC supply realized cap comes full circle

As BTC price action continues to fluctuate, investors are looking to the short-term holders (STHS) and their aggregate cost basis to gain insight into the market. CryptoQuant reveals that the realized capitalization of coins which last moved between 24 hours and one month ago has declined in recent months.

Realized cap is the total value, in U.S. dollars, of a specific group of bitcoins being used in transactions. Tracking the 1D-1M cohort can provide information about Bitcoin’s price action, according to CryptoQuant. “In my view, this dataset effectively reflects Bitcoin’s market price fluctuations,” contributor Binh Dang wrote.

In late 2022, the 1D-1M cohort’s realized cap plummeted to below $20 billion, while it peaked at around $44 billion when Bitcoin reached its highest value of just below $32,000 in July. Now, the figure has decreased back to the bear market levels, “recovering slightly” to still hover near the $20 billion mark.

The current change in this data reflects the market sentiment, including macroeconomic and geopolitical issues, Binh noted in his chart analysis.

Bitcoin newbies should not expect rerun of Q1 gains

Recent data suggests that the $20 billion mark has formed a base for the 1D-1M crypto coins since September last year, but it is unlikely that this will result in a stronger bounce in the near future.

“My AI and other recent AI developments may not be able to show significant and positive trends until the end of the year,” Banh wrote.

The percentage of the aggregate realized cap accounted for by 1D-1M coins also reflects this conclusion.