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What happened? The founder and head of the analytical blockchain platform CryptoQuant, Ki Young Ju, said that the crypto market is at the beginning of the altcoin season - a period when such assets are ahead of Bitcoin in terms of profitability. According to him, this is indicated by the MVRV (market value to realized value ratio) indicators for Ethereum and BTC.
Source: X.com
What else is known? The analyst clarifies that the MVRV of the largest altcoin is growing faster than that of the first cryptocurrency. This suggests that the ETH market is warming up relative to on-chain fundamentals.
Young Ju notes that ETH will be the top performer this altcoin season as the market awaits the approval of spot exchange-traded funds (ETFs) based on the asset in the United States. At the same time, according to historical data, other altcoins are beginning to grow after ETH.
In his forecasts, the expert relied on the altcoin season indicator based on MVRV. The indicator allows you to determine trends in the market by calculating the difference between the average MVRV for ETH and BTC, respectively, over the last 180 days.
Two days ago, Yang Ju also published some relevant characteristics of the Bitcoin market. According to him, the price of the asset is under pressure as a result of sales from miners and long-term holders, and spot BTC-ETFs and custodial wallets are starved of new supply of the asset.
Thus, over the past two weeks, institutional long-term holders sold $1.2 billion worth of coins through brokers, and withdrew $460 million from ETFs over the same period. The analyst then admitted that if this liquidity is not purchased on over-the-counter (OTC) platforms, brokers may list coins on exchanges, which will affect the market.
Source: X.com
At the same time, the analyst emphasized that cyclical indicators indicate a continuation of the bullish trend for Bitcoin.
Source: X.com
