Outflows Persist, L2s Shine
Realized Cap Highlights Continued Outflows
Realized capitalization is an important metric we have frequently referenced in prior notes. It values the network based on the price at which each bitcoin was last exchanged. It is a way to calculate the overall cost basis of all $BTC holders and, consequently, is a useful measure of flows into and out of the bitcoin network.
As one might expect, this year has witnessed significant and sustained declines in realized cap as entities that bought towards the market top of the market in 2021 have sold their BTC at a loss, seeking liquidity in other assets. Below we include the 30-day average of the realized P&L metric, which calculates the aggregate gain/loss on bitcoin transactions. When realized P&L moves below zero, we can see that realized cap heads lower.
Below is a more explicit graphical representation of the same realized cap metric. This chart articulates the same observed outflow trend differently – mapping out inflows/outflows on a weekly basis. Understandably, there have been sustained outflows since Q2 of this year.
A couple of things to note on the chart above:
Naturally, most cycles are comprised of a period of outsized inflows followed by outflows. However, using the 2017 b...Unlock this article by joining our Community!
An FSI Pro, or FSI Crypto subscription is required in order to access this content.
*Free trial available only on a monthly plan
Already a member?
We accept crypto via BitPay for yearly subscriptions.
Choose one of our yearly plans to save nearly 15%Webinars
We host over 12 LIVE webinars per year with our research team and high-profile special guests. Incredible value and market insights!
WEEKLY
COMING SOON
Fireside Chats
Weekly interviews with our research heads about market opportunities and important updates.
WEEKDAYS
Tom Lee's First Word
The best market research out there -- on a near-daily basis.
ON MARKET EVENTS
Tom Lee's Intraday Word
These are released periodically after crucial market developments.
DAILY
Daily Technical Strategy
Daily commentary on market trends and short term opportunities.
WEEKLY
Wall Street Whispers
Exclusive insights based on discussions with institutional clients.
WEEKLY
Quantitative Strategy
Quantitative market research utilizing industry-leading analytical methods.
WEEKLY
US Policy
Weekly update on developments in Washington DC and how they may impact Wall Street.
WEEKLY
Weekly Roadmap
Weekly summary of market events and updates on our key theses.
EARNINGS SEASON
Earnings Daily
A multi-faceted update of earnings developments.
UPDATED BI-WEEKLY
Signal From Noise
Highlights timely market themes and sectors with corresponding stocks, cutting through the day-to-day market “noise” for a distinct perspective.
UPDATED QUARTERLY
Granny Shots
Thematic investment stock picks that aim to outperform the S&P 500.
UPDATED MONTHLY
Brian’s Dunks
Single stock pics that are poised to outperform the index by leveraging sector outperformance and earning revisions strategies.
UPDATED MONTHLY
FSI Sector Allocation
A sector allocation strategy that is designed to outperform the S&P 500 while taking minimal risk.
UPDATED MONTHLY
Factor Strategy
List of ETFs based on quantitative models that should outperform the S&P 500 on a monthly basis.
UPDATED MONTHLY
Newton's Upticks
Technically derived, intermediate-term picks of attractive risk/reward opportunities from the S&P 500.
FSI Academy
Thematic investment stock picks that aim to outperform the S&P 500.
Community Questions
We gather your inquiries and answer them in the most scalable way. Hear directly from our research principals!
Community Interviews
Get questions answered directly by our research heads and guest speakers.
Get access to all the macro research on FS Insight
First Month Free!
Webinars
Ongoing webinars exploring crypto opportunities, in depth research, and exclusive research offerings from our team of analysts and leading cryptocurrency firms.
WEEKLY
Crypto Comments
Digestible videos expanding on important market events and metrics that are shaping cryptocurrency markets.
DAILY
Crypto Market Update
Stay on top of the crypto markets with macro commentary, technical analysis, and the most relevant news.
INTRA MONTH
Crypto First Word from Tom Lee
Hear directly from Tom Lee about important cryptocurrency developments.
WEEKLY
Crypto Technical Strategy
From Bitcoin, Ethereum and Solana to other coins, our Head of Technical Strategy highlights important price movement to help give you an edge.
WEEKLY
Crypto Strategy
A must-read summarizing our key thoughts about the crypto market, price action, and developing trends.
WEEKLY
Funding Fridays
Are you looking for investment opportunities in the crypto space? We explore early-stage crypto opportunities in this note about where the smart money is being invested!
WEEKLY
COMING SOON
Crypto Events
Never miss another conference, a high-impact software update, or an event that could be market-moving!
NTRA-MONTH
Deep Research Reports
Our consulting business delivers incredible deep research reports to highlight the economics and viability of exciting crypto projects.
WEEKLY
Crypto Strategy
Keep track of bitcoin sentiment to plan your digital assets strategy.
FSI Academy
Our main goal is to make you a better investor! This series will guide you through key financial concepts and topics in an understandable way.
Community Questions
We gather your inquiries and answer them in the most scalable way. Hear directly from our research principals!
Community Interviews
Get questions answered directly by our research heads and guest speakers.
Get access to all the Crypto research on FS Insight
First Month Free!
Webinars
We host over 12 LIVE webinars per year with our research team and high-profile special guests. Incredible value and market insights!
WEEKLY
COMING SOON
Fireside Chats
Weekly interviews with our research heads about market opportunities and important updates.
WEEKDAYS
Tom Lee's First Word
The best market research out there -- on a near-daily basis.
ON MARKET EVENTS
Tom Lee's Intraday Word
These are released periodically after crucial market developments.
DAILY
Daily Technical Strategy
Daily commentary on market trends and short term opportunities.
WEEKLY
Wall Street Whispers
Exclusive insights based on discussions with institutional clients.
WEEKLY
Quantitative Strategy
Quantitative market research utilizing industry-leading analytical methods.
WEEKLY
US Policy
Weekly update on developments in Washington DC and how they may impact Wall Street.
WEEKLY
Weekly Roadmap
Weekly summary of market events and updates on our key theses.
EARNINGS SEASON
Earnings Daily
A multi-faceted update of earnings developments.
UPDATED BI-WEEKLY
Signal From Noise
Highlights timely market themes and sectors with corresponding stocks, cutting through the day-to-day market “noise” for a distinct perspective.
UPDATED QUARTERLY
Granny Shots
Thematic investment stock picks that aim to outperform the S&P 500.
UPDATED MONTHLY
Brian’s Dunks
Single stock pics that are poised to outperform the index by leveraging sector outperformance and earning revisions strategies.
UPDATED MONTHLY
FSI Sector Allocation
A sector allocation strategy that is designed to outperform the S&P 500 while taking minimal risk.
UPDATED MONTHLY
Factor Strategy
List of ETFs based on quantitative models that should outperform the S&P 500 on a monthly basis.
UPDATED MONTHLY
Newton's Upticks
Technically derived, intermediate-term picks of attractive risk/reward opportunities from the S&P 500.
FSI Academy
Thematic investment stock picks that aim to outperform the S&P 500.
Community Questions
We gather your inquiries and answer them in the most scalable way. Hear directly from our research principals!
Community Interviews
Get questions answered directly by our research heads and guest speakers.
Get access to all the macro research on FS Insight
First Month Free!
Webinars
Ongoing webinars exploring crypto opportunities, in depth research, and exclusive research offerings from our team of analysts and leading cryptocurrency firms.
WEEKLY
Crypto Comments
Digestible videos expanding on important market events and metrics that are shaping cryptocurrency markets.
DAILY
Crypto Market Update
Stay on top of the crypto markets with macro commentary, technical analysis, and the most relevant news.
INTRA MONTH
Crypto First Word from Tom Lee
Hear directly from Tom Lee about important cryptocurrency developments.
WEEKLY
Crypto Technical Strategy
From Bitcoin, Ethereum and Solana to other coins, our Head of Technical Strategy highlights important price movement to help give you an edge.
WEEKLY
Crypto Strategy
A must-read summarizing our key thoughts about the crypto market, price action, and developing trends.
WEEKLY
Funding Fridays
Are you looking for investment opportunities in the crypto space? We explore early-stage crypto opportunities in this note about where the smart money is being invested!
WEEKLY
COMING SOON
Crypto Events
Never miss another conference, a high-impact software update, or an event that could be market-moving!
NTRA-MONTH
Deep Research Reports
Our consulting business delivers incredible deep research reports to highlight the economics and viability of exciting crypto projects.
WEEKLY
Crypto Strategy
Keep track of bitcoin sentiment to plan your digital assets strategy.
FSI Academy
Our main goal is to make you a better investor! This series will guide you through key financial concepts and topics in an understandable way.
Community Questions
We gather your inquiries and answer them in the most scalable way. Hear directly from our research principals!
Community Interviews
Get questions answered directly by our research heads and guest speakers.
Get access to all the Crypto research on FS Insight
First Month Free!
Reports you haven't read
Discover market dynamics, risk aversion, and asset impacts. Explore liquidity, short-term bills, and capital flow. Stay informed about FOMC meetings. Uncover expert analysis and a constructive outlook on the crypto market. Don't miss this insightful video for investors.
Traditional markets are stumbling today as the National Bank of Canada unexpectedly raised interest rates by 25 bps, sparking fears that the U.S. will potentially follow suit. The SPX (-0.31%) failed to break through $4,300, while the NDQ (-1.36%) has taken a pause on its recent outperformance. Crypto markets are still digesting the repercussions of the SEC lawsuits against Binance and Coinbase, with BTC -1.97% (-3.15%) trading around $26.3k and ETH -2.16% ...
SEC EMPTIES THE CHAMBER It’s only Wednesday, but the SEC has pulled out the big guns. Conveniently following the release of a rather comprehensive crypto oversight bill by the House Financial Services Committee on Friday, the SEC dropped their mightiest hammer to date on the crypto industry. On Monday, the SEC took legal action against Binance, accusing the exchange of offering unregistered securities to the public. The SEC's lawsuit alleged...
