What is Market capitalisation?
Spot price multiplied by circulating supply. A convenient comparison figure, not a measure of money invested.
Market cap assumes every unit could transact at the current marginal price, which is not true for any asset and is particularly untrue for thinly traded ones.
For Bitcoin the supply half of the calculation is at least verifiable. For most other crypto assets it depends on a reported supply figure nobody audits, which is why aggregate "crypto market cap" should be treated as an indicator rather than a measurement.
Market cap is not money that has flowed in. A small trade at a new price revalues the entire supply on paper.
Related terms
Bitcoin dominance
Bitcoin's market capitalisation as a share of the total reported crypto market capitalisation.
On-chain dataRealised cap
A valuation that prices each coin at the value it last moved at, rather than at current spot.
On-chain dataCirculating supply
The quantity of bitcoin that has been mined, verifiable directly against the issuance schedule.
This definition is part of the Bitcoin Logical glossary. For the fuller explanation, start with Learn, or see the live numbers on The Bitcoin Signal.