Here’s what’s stopping Bitcoin from entering “real bull market territory,” according to IntoTheBlock
Crypto analytics firm IntoTheBlock says key metrics show Bitcoin (BTC) is not in a full bull market.
IntoTheBlock says Bitcoin's current fundamentals differ from those during historical bull markets, as the crypto king stalls around the $40,000 mark.
“A lack of volume compared to previous bull markets, a limited decline in the balance of long-term holders, and a very modest MVRV (market value to realized value) ratio of 1.88 suggest that Bitcoin is most likely and will continue to suffer a temporary setback “does” to get into actual bull market territory.”
The analytics firm says that Bitcoin holders are not behaving as one would expect during the bull market, while “Bitcoin prices have fallen by about 10% over the past week, and since the approval of the Bitcoin ETF (Exchange Traded Fund ) even more.”
Says IntoTheBlock,
“Most addresses that are reducing their balances are those that have held Bitcoin for one to twelve months. At the same time, long-term holders have not been buying as heavily as in recent months, so the total number of Bitcoins held by this group has declined slightly.”
The company's MVRV chart shows a relatively low ratio compared to historical BTC bull markets.
Source: IntoTheBlock/X
The MVRV is the ratio of an asset's market capitalization to its realized capitalization – the value of all Bitcoin at the price at which it was purchased, not the current price – and attempts to capture market lows and highs.
Bitcoin is trading at $40,674 at the time of writing, down more than 3% in the last 24 hours.
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