As an experienced analyst, I believe that the recent correction in Bitcoin’s price does not signal the end of its bull market. Based on the data from CryptoQuant’s analysis, the current MVRV ratio suggests that Bitcoin has not yet entered the overvalued zone and is primed for more gains.
Bitcoin momentarily reached an all-time high of around $70,000, only to experience a setback and approach $68,000 once more. Although it seems that a significant breakout isn’t imminent, available data indicate that the bullish trend is far from exhaustion.
Based on the most recent assessment from CryptoQuant, it appears that Bitcoin has significant room for further growth.
Bitcoin Resurgence in June
After analyzing the MVRV ratio in their latest report, CryptoQuant found that the ongoing cryptocurrency bull market still has significant room for growth.
In historical bull markets for Bitcoin (BTC), the Market Value to Realized Value (MVRV) ratio reached peaks of 4.83 and 3.97. At present, this ratio stands at 2.78. This lower figure suggests that BTC has not yet reached an overvalued stage based on past trends. The relatively low MVRV ratio implies that there is potential for further price gains in Bitcoin.
Based on recent trends, CryptoQuant predicts that Bitcoin’s price may start to rise again as early as June 2024, following over two months of sideways movement and adjustment since the cryptocurrency entered an overheated phase in March 2024.
Over the past year, the value of the asset increased by around 152%. The surge was primarily fueled by two major events in 2024: the approval of spot Bitcoin ETFs in January and the recent Bitcoin halving.
Stable Price Range for Bitcoin
The focus is intently on the Federal Reserve’s potential for reducing interest rates. Market players anticipate that this move could lead to a surge in stock market values. This belief also applies to bitcoin, which typically responds to changes in borrowing costs by increasing in value.
As a researcher studying the Bitcoin market, I’ve discovered that one of the main reasons behind the all-time high reached by Bitcoin in 2021 was the unusually low-interest rate environment. However, this trend reversed as the Federal Reserve initiated its monetary policy tightening measures.
As a crypto investor, I’ve noticed similar views expressed by Mike Novogratz, CEO of Galaxy Digital. In a recent interview, he discussed how the latest bitcoin halving and the widespread adoption of Bitcoin ETFs affected its price trend during the first quarter of the year. Moreover, Novogratz emphasized that the market is now focusing on the Federal Reserve’s decisions regarding interest rates.
According to Novogratz, the Federal Reserve’s decision to keep short-term interest rates unchanged implies that the bitcoin market will likely trade between $55,000 and $73,000. This range suggests a degree of stability in the bitcoin market, which is largely influenced by broader economic policies.
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2024-05-28 16:04