{"id":667261,"date":"2024-12-26T19:00:29","date_gmt":"2024-12-26T19:00:29","guid":{"rendered":"https:\/\/wncen.com\/?p=667261"},"modified":"2024-12-26T14:04:02","modified_gmt":"2024-12-26T14:04:02","slug":"bitcoin-bull-run-over-legendary-metric-says","status":"publish","type":"post","link":"https:\/\/wncen.com\/bitcoin-news\/bitcoin-bull-run-over-legendary-metric-says\/","title":{"rendered":"Is Bitcoin Bull Run Over? What This Legendary Metric Says"},"content":{"rendered":"

Here’s what the historical trend of the Bitcoin Market Value to Realized Value (MVRV) Ratio suggests regarding whether the current bull run is over or not.<\/p>\n

Bitcoin MVRV Ratio Could Hint At Where BTC Is In Current Cycle<\/h2>\n

In a new post<\/a> on X, CryptoQuant founder and CEO Ki Young Ju shared a chart showcasing the past pattern in the Bitcoin MVRV Ratio. The MVRV Ratio<\/a> refers to a popular on-chain metric that, in short, keeps track of how the value held by the BTC investors (that is, the market cap) compares against the value that they initially put into the asset (the realized cap<\/a>).<\/p>\n

Related Reading: XRP Jumps 4%, Whale Reacts With $69 Million Coinbase Deposit<\/a><\/div>\n

When the value of the ratio is greater than 1, it means the investors as a whole can be assumed to be in a state of profit. On the other hand, it is under the mark, implying the dominance of loss in the market.<\/p>\n

The version of the MVRV Ratio posted by Young Ju isn’t the ordinary one, but rather a modified form called the “True MVRV.” This variation takes into account for only the data of the coins that were involved in some kind of transaction activity during the past seven years.<\/p>\n

Coins that are older than seven years can be assumed to be lost forever, either due to being forgotten or because of having their wallet keys misplaced. As such, the True MVRV, which excludes these coins that are probable to never return back into circulation, can provide a more accurate picture of the sector than the normal version of the metric.<\/p>\n

Now, here is a chart that shows the trend in this Bitcoin indicator over the history of the cryptocurrency:<\/p>\n

\"Bitcoin
Looks like the value of the metric has seen a small decline in recent days | Source: @ki_young_ju on X<\/a><\/figcaption><\/figure>\n

As displayed in the above graph, the Bitcoin True MVRV has climbed to relatively high levels during this bull run. This implies the average investor is carrying notable profits.<\/p>\n

Historically, the higher the holder gains get, the more likely they become to participate in a mass selloff<\/a> with the motive of profit-taking. Thus, whenever the MVRV Ratio rises high, a top can become probable for BTC.<\/p>\n

From the chart, it’s visible that the tops during the past cycles occurred when the indicator surpassed a specific line. So far, the metric hasn’t come close to retesting this level in the latest epoch.<\/p>\n

Related Reading: Bitcoin Sentiment Still Close To Extreme Greed: More Cooldown Needed For Bottom?<\/a><\/div>\n

According to the CryptoQuant founder, the reason the market cap hasn’t overheated relative to the realized cap yet is that there is still $7 billion in capital inflows entering the Bitcoin market every week.<\/p>\n

If the current cycle is going to show anything similar to the previous ones, then the True MVRV being high, but not extremely high, could potentially suggest room for BTC left in the current bull run.<\/p>\n

BTC Price<\/h2>\n

Bitcoin has retraced its Christmas rally as its value is now back down to $95,700.<\/p>\n

\"Bitcoin
The price of the coin appears to have plunged over the last 24 hours | Source: BTCUSDT on TradingView<\/a><\/figcaption><\/figure>\n
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"

Here’s what the historical trend of the Bitcoin Market Value to Realized Value (MVRV) Ratio suggests regarding whether the current bull run is over or not. Bitcoin MVRV Ratio Could Hint At Where BTC Is In Current Cycle In a new post on X, CryptoQuant founder and CEO Ki Young Ju shared a chart showcasing the past pattern in the Bitcoin MVRV Ratio. The MVRV Ratio refers to a popular on-chain metric that, in short, keeps track of how the value held by the BTC investors (that is, the market cap) compares against the value that they initially put into the asset (the realized cap). Related Reading: XRP Jumps 4%, Whale Reacts With $69 Million Coinbase Deposit When the value of the ratio is greater than 1, it means the investors as a whole can be assumed to be in a state of profit. On the other hand, it is under the mark, implying the dominance of loss in the market. The version of the MVRV Ratio posted by Young Ju isn’t the ordinary one, but rather a modified form called the “True MVRV.” This variation takes into account for only the data of the coins that were involved in some kind of transaction activity during the past seven years. Coins that are older than seven years can be assumed to be lost forever, either due to being forgotten or because of having their wallet keys misplaced. As such, the True MVRV, which excludes these coins that are probable to never return back into circulation, can provide a more accurate picture of the sector than the normal version of the metric. Now, here is a chart that shows the trend in this Bitcoin indicator over the history of the cryptocurrency: As displayed in the above graph, the Bitcoin True MVRV has climbed to relatively high levels during this bull run. This implies the average investor is carrying notable profits. Historically, the higher the holder gains get, the more likely they become to participate in a mass selloff with the motive of profit-taking. Thus, whenever the MVRV Ratio rises high, a top can become probable for BTC. From the chart, it’s visible that the tops during the past cycles occurred when the indicator surpassed a specific line. So far, the metric hasn’t come close to retesting this level in the latest epoch. Related Reading: Bitcoin Sentiment Still Close To Extreme Greed: More Cooldown Needed For Bottom? According to the CryptoQuant founder, the reason the market cap hasn’t overheated relative to the realized cap yet is that there is still $7 billion in capital inflows entering the Bitcoin market every week. If the current cycle is going to show anything similar to the previous ones, then the True MVRV being high, but not extremely high, could potentially suggest room for BTC left in the current bull run. BTC Price Bitcoin has retraced its Christmas rally as its value is now back down to $95,700. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/p>\n","protected":false},"author":542,"featured_media":667264,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[428,11614,85533,84723,1119,78790],"class_list":["post-667261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-bull","tag-bitcoin-bull-run","tag-bitcoin-mvrv","tag-btc","tag-btcusdt"],"acf":[],"yoast_head":"\nIs Bitcoin Bull Run Over? 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Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn\u2019t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn\u2019t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.","sameAs":["https:\/\/www.linkedin.com\/in\/keshavverma29\/","https:\/\/x.com\/https:\/\/twitter.com\/keshavvarma29"],"url":"https:\/\/wncen.com\/author\/hououinkyouma29\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Is Bitcoin Bull Run Over? 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