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Thermocap Multiple

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Updated 41 minutes ago
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Thermocap Multiple Explained

The Thermocap multiple chart displays the ratio between the cumulative mined BTC (the block subsidy) and denominates them in USD, starting from day one and up to the given day.

There are two lines on this chart:
- The price of bitcoin on a given day (measured on the right)
- The Thermocap multiple for that day (measured on the left)

How to Calculate Thermocap Multiple

Take the bitcoin price on a given day and divide by the total historical block subsidy. This total historical block subsidy is calculated by taking the amount of bitcoins minted on each day and multiplying them by the end of day price on that day. Then you add all of these daily subsidies up for every day previous to the one you are looking at.

Formula
Thermocap Multiple = \frac {\normalsize BTC(t,\$)}{\displaystyle \sum_{t=0}^n \Big[{BTC(t,\$)} \cdot BlockReward(t) \Big]}

How to Interpret Thermocap Multiple

The Thermocap Multiple chart can be used to predict the end of bull market. Historically bull markets end when the value of the Thermocap multiple goes above 400 * 1e-8. In order to reach such a number today, the bitcoin price would need to reach at least 292943.51.

Disclaimer
Any information found on this page is not to be considered as financial advice. You should do your own research before making any decisions.

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