Traders’ expectation for Bitcoin since the start of the year was dashed few days back as Bitcoin slopes, dropping by about 47% since March 12. However, further drops are expected due to the unending Coronavirus pandemic, this is not associated to the crypto market alone.
Bitcoin and the entire crypto market are now presenting new data last presented as far back as 2018.
For the fourth time since the creation of the digital currency, the Market Value to Realized Value (MVRV) ratio of Bitcoin is now below 1. Based on calculation, this denotes devaluation of Bitcoin.
However, Bitcoin has presented only two historical thresholds of 3.7, a clear symbol of overvaluation.
As related by crypto analytical and research platform Coinmetric, the present devaluation figure presented by the MVRV ratio would likely be of great benefit to investors in the market.
Coinmetric asserted that in the past when the MVRV dropped below 1, it serves as an excellent accumulation time for investors. The research platform furthered that investors and traders can now get Bitcoin at a discounted price before the crypto market returns on the upside trend. Then buyers would reap the fruit of their labor.
For only the fourth time in history, BTC MVRV has dropped below 1. In hindsight, the past periods where MVRV dropped below 1 have been the best times to accumulate BTC at a relatively discounted price. pic.twitter.com/KvlklH1snk
— CoinMetrics.io (@coinmetrics) March 13, 2020
Coinmetrics said the MVRV drop below 1 is as a result of the massive reduction in the market cap of Bitcoin. In the last 7 days, the market cap of Bitcoin dropped by 47% while the realized cap only went down by 3%.
Hours ago, Bitcoin super fan, Jimmy Song said people who fail to buy Bitcoin would later regret when the crypto asset takes the bull form. He said the nocoiners would feel apologetic when Bitcoin rises to $100K.
$1.3B BTC, $200M ETH Deposited on Major Exchanges
Bitcoin buying pressure in the market seems to be growing gradually with a noticed huge amount of Bitcoin and Ethereum deposited on major exchanges.
While traders are of the solid opinion that the market pullback is a blessing in disguise, some are already taking full advantage of this assertion by increasing their Bitcoin holding at the time the price is down.
Coinmetric has just confirmed that since March 11, there has been a huge surge in the amount of Bitcoin deposited on major exchanges.
The platform illustrated that not less than $1.3 billion worth of Bitcoin and $200 million worth of ETH deposit were recorded on major exchange in recent times.