Crypto Analytics Firm Says Bitcoin Is Not in a Full-On Bull Market
Crypto analytics firm IntoTheBlock suggests that Bitcoin (BTC) is currently not in a full-on bull market. According to the firm, key metrics indicate that Bitcoin’s current fundamentals differ from those seen during historical bull markets, as the cryptocurrency remains stagnant around the $40,000 level.
IntoTheBlock points out that the lack of volume compared to previous bull markets, a limited decrease in long-term holders’ balance, and a relatively modest market value to realized value (MVRV) ratio of 1.88 suggest that Bitcoin is likely experiencing a temporary setback and has yet to enter true bull-market territory.
Holders’ Behavior During the Bull Market
IntoTheBlock also notes that Bitcoin holders are not behaving as expected during a bull market. Despite a recent 10% decrease in Bitcoin prices and the approval of a Bitcoin exchange-traded fund (ETF), long-term holders have not been buying as strongly as they have in previous months. Additionally, many addresses decreasing their balances are those that have held Bitcoin for one to 12 months.
Low MVRV Ratio Compared to Historic Bull Markets
The MVRV chart provided by IntoTheBlock shows that Bitcoin’s MVRV ratio is relatively low compared to previous BTC bull markets. The MVRV ratio measures an asset’s market cap versus its realized capitalization, aiming to identify market bottoms and tops.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading at $40,674, reflecting a more than 3% decrease in the last 24 hours.
Hot Take: What’s Holding Back Bitcoin from Entering the Real Bull-Market Territory?
According to IntoTheBlock, Bitcoin’s current lack of volume, limited decrease in long-term holders’ balance, and relatively modest MVRV ratio suggest that the cryptocurrency is experiencing a temporary setback and has yet to enter true bull-market territory. The behavior of Bitcoin holders during this time is also not aligning with typical patterns seen in previous bull markets. While Bitcoin’s price has decreased and an ETF has been approved, long-term holders are not buying as strongly as before, and addresses decreasing their balances are mainly those that have held Bitcoin for one to 12 months. These factors indicate that Bitcoin’s current situation may not be indicative of a full-fledged bull market.
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