Bitcoin On-Chain Analysis: MinerCap To ThermoCap Ratio

Hey everyone and thanks for jumping back Into the cryptiverse today we're going To talk about Bitcoin and we're going to Be putting back on our on-chain analysis Hat and discuss the minor cap to Thermocap ratio or the minor Capitalization divided by Thermo Capitalization if you guys like the Content make sure you subscribe to the Channel give the video a thumbs up and Also check out the sale on into the Cryptographers premium out into the we're going to try to Keep this video somewhat short and sweet Now I will say that on chain analysis is Dubious at Best of course because it Could be it could theoretically be Manipulated Um and so we must remember that when Talking about on-chin analysis with that Said I still think that onshine analysis Is useful as long as we keep that in Mind now the minor cap to thermocap Ratio is is an interesting sort of Metric to look at and first of all I Suppose we should Define what it is Precisely that we're talking about okay Now I will say you know a lot of times On this channel we talk about a lot of The same metrics we look at the markets Using several different caters but we Tend to recycle a lot of those Indicators and make updates to those Indicators you know every couple of

Weeks or so but I do want to do a better Job of trying to incorporate some other Types of indicators and metrics just to Give us a more holistic view of the Market the minor Capital thermal cap Ratio is is a ratio that well let's Let's first Define what it is we're Talking about okay So when a minor is successfully mined The block we know that they're rewarded With newly minted Bitcoin okay now and That's called The Block subsidy now if You add that up with the transaction Fees in that block you get something Known as the miner's Revenue the All-time cumulative minor revenue is Called the thermocab and it's calculated By taking the running sum of daily minor Revenue in USD so that is how you Calculate out the thermo cap The minor cap the minor capitalization Is equal to the sum of balances of all Mining entities multiplied by the price Of that day Says a mining entity is an address that Receives newly issued Supply or Transaction fees so we're basically just Looking at the minor cap divided by the Thermocat so we're looking essentially At These two things the minor cap and the Thermocab that's what we're looking at So we're looking at that ratio okay Now if we go on here and we look at this

Ratio you'll notice a couple of things The first thing you might notice is that We see diminishing returns from one Cycle to another in this ratio okay so Yes we've seen diminishing returns from One bull market to another with Bitcoin Which was very controversial view last Cycle right you know it was very Controversial view but it's still we Still have experienced diminishing Returns from one cycle to another even With this ratio But we've also seen diminishing losses From one cycle to another if you sort of Just hover above each low you can see That each low is higher or sorry each This initial low is lower than the lows That came in the cycle after that and Those lows were lower than this cycle And then those lows are lower than this Cycle So we have seen diminishing losses in This ratio as well but then another Observation would be to say that while It did not occur over here in this first Cycle in the second cycle you can Actually see that that test of that Level of that initial low we Revisited That later on when Bitcoin got a double Bottom and we actually went slightly Lower on the minor cap to thermal cap Ratio just sort of drawing the line Across we actually went slightly lower On that ratio the next cycle if we sort

Of hover across this line you can see That we sort of double tap this level And then we touch that level again all The way back out in March 2020. so in in 2015 we sort of hit this low in January And then about seven months later we hit It again in August last cycle we hit These lows in December and in February And then we hit it again in March of 2020. so from February to 2019 February 2019 this was about 13 months later if You measure it from December of course It's more you know we're talking about 14 15 months out But regardless what you'll notice is we Get diminishing Roi of this metric from one cycle to Another you can even imagine sort of Drawing an imaginary trend line through These Peaks but you can also see that we Get diminishing losses from one cycle to Another of this metric but we also tend To Hit a low and then retest it later now In 2015 it corresponded to a double Bottom in 2020 it corresponded to a Higher low but it is interesting that This is the level that we ultimately Back tested with this ratio it kind of Goes back to that that chart we talked About yesterday the stable coin Supply Ratio because there was a lot of Interesting ways that we could look at The market using that chart and how 2019

And 2023 the the stable coin Supply Ratio oscillator topped out at the same Level and after a lot of these major Tops they then bottom at a very similar Level and so I wonder if this metric Would be useful in identifying where the Secondary scare of Bitcoin terminates Just like it identified it when it Terminated in 2020 it corresponding to Just this prior these prior lows over Here and it identified it in 2015 when We basically took out you know just sort Of swept these lows over here on this Ratio so just one more indicator to sort Of add to your toolkit but I'm not Saying that you should take it to the Bank but it is an interesting way to in Fact view the market and again a Reminder we do have a lot of charts on The website I know I do recycle the same You know the same ones quite frequently Um but we have quite a bit and and I'll Hopefully try to do a better job of Going through some of those metrics more Frequently and and trying to include you Know one or two new charts Um hopefully every week or every couple Of weeks or so just so we're keeping the Analysis fresh and we're looking at the Market in in other ways rather than Rather than the same way we've looked at It that way it'll at least keep the the Analysis somewhat Lively especially as a Social risk continues to diminish and no

One really cares anymore but anyways What happened up there thank you guys For tuning in make sure you subscribe if You're not subscribed again check out The sale on into the cryptoverse premium And I'll see you guys again next time Bye


Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.

Leave a Comment

    • bitcoinBitcoin (BTC) $ 64,940.00 0.24%
    • ethereumEthereum (ETH) $ 3,519.78 0.79%
    • tetherTether (USDT) $ 0.999053 0.03%
    • bnbBNB (BNB) $ 591.86 1.32%
    • solanaSolana (SOL) $ 133.67 1.27%
    • staked-etherLido Staked Ether (STETH) $ 3,518.57 0.78%
    • usd-coinUSDC (USDC) $ 0.999564 0.03%
    • xrpXRP (XRP) $ 0.490529 0.59%
    • dogecoinDogecoin (DOGE) $ 0.124401 1.87%
    • the-open-networkToncoin (TON) $ 7.12 3.19%