Cryptocurrency Q&A
What is bitcoin's free float ratio?
What is bitcoin's free float ratio?
OpalSolitude
Sun Jul 14 2024
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7 answers
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Could you elaborate on the concept of Bitcoin's free float ratio? I'm curious to understand how it is calculated and what implications it has for investors and the overall cryptocurrency market. Specifically, I'm interested in knowing if a higher or lower free float ratio is typically associated with higher volatility or market stability. Also, I'd like to understand if this ratio varies significantly over time and if it's influenced by external factors like regulations or major economic events. Thank you for your insight on this matter.
7 answers
BitcoinBaroness
Tue Jul 16 2024
This figure is derived from the free float supply of 14.3 million Bitcoins, out of a total on-chain supply of 18.4 million.
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BlockchainLegend
Tue Jul 16 2024
To arrive at this calculation, Coin Metrics, a renowned crypto analytics firm, has implemented a new free float supply metric identification process.
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Federica
Tue Jul 16 2024
Under this process, specific addresses falling into various categories have been tagged by Coin Metrics and are deemed to be restricted.
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HallyuHype
Tue Jul 16 2024
These restricted addresses typically represent coins that are not freely tradable in the market, such as those held by exchanges, miners, or long-term investors.
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SumoPower
Tue Jul 16 2024
Bitcoin's free float ratio stands at a significant 77.8%, indicating that a considerable portion of its total on-chain supply is in circulation.
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