Certainly! Let's delve into the crypto market's recent developments and explore whether we're witnessing a prelude to the next bull run. đ
1. Bitcoin's MVRV Indicator:
- To gauge the overall market position, we often look at Bitcoin (BTC) since it constitutes around half of the crypto market's value.
- The Market Value to Realized Value (MVRV) ratio, developed by analysts David Puell and Murad Muhmudov, provides insights into BTC's current state.
- MVRV divides Bitcoin's market value (market capitalization) by its realized value (based on the last transaction price). Historically, MVRV has signaled market tops or bottoms.
- Currently, Bitcoin's MVRV value is around 2.3, far from the levels (around 3.5) seen when bull markets start losing steam. This suggests room for further growthÂč.
2. Coinbase Trading Volume:
- Coinbase Global (NASDAQ: COIN) is a popular crypto platform. Analyzing its trading volume provides insights into market sentiment.
- During the 2021 bull market, Coinbase's trading volume surpassed $548 billion in Q4 alone.
- However, the most recent earnings report shows a total trading volume of just $154 billion, indicating that investors haven't fully returned to crypto.
- Until trading volumes approach those of the last bull market, there's potential for further growth in this cycleÂč.
3. The True Bull Market Awaits:
- While we've seen recent corrections, the real bull market for Bitcoin hasn't begun yet.
- Current signs point to a "pre-bull" phase characterized by sideways movement.
- The eagerly anticipated golden bull may emerge a few months after April, according to some analysesâŽ.
Remember, successful investing involves risk management and a long-term perspective. Keep an eye on market trends, news, and events, and consider diversifying your portfolio. đ#Write2Earn! #TipCreator #VanEck_SOL_ETFS #SOFR_Spike