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Bitcoin on-chain metric suggests 2017-style bull run will continue

Published 11/04/2021, 12:25 PM
Updated 11/05/2021, 08:40 AM
© Reuters.

Bitcoin's (BTC) pullback from its record high of $67,000 to below $60,000 has not deterred bulls from eyeing another peak level ahead, per an indicator that attempts to predict market bottoms and tops.

Dubbed MVRV, the risk metric represents the ratio of Bitcoin's market value to its realized value — similar to the price to book (P/B) ratio that compares a company's market value to its book value. In doing so, MVRV attempts to identify whether an asset is under or overvalued.

Bitcoin price verses MVRV. Source: CryptoQuant
Bitcoin balances across all exchanges reserves. Source: CryptoQuant
Bitcoin Whales Supply Shock. Source: Glassnode

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