Bitcoin (BTC) has climbed back to ,000 for the first time in 19 months – nearly three years since first reaching that value in February 2021. That doesn’t mean the asset is stagnant, however: on-chain analysis finds that much has changed about the nature of the crypto market, painting a much more bullish outlook this time around. Bitcoin at k: Then VS Now According to leading Glassnode analyst James Check, ,000 marked the “absolute zenith of on-chain mania” back in January 2021. The growing hype was visible by observing Bitcoin’s “Value Days Destroyed” Multiple – a Glassnode metric for detecting whether overheated or undervalued Bitcoin markets. A higher multiple indicated that long-term investors are finally realizing profits on old, once-dormant coins. Spending
Topics:
Andrew Throuvalas considers the following as important: AA News, Bitcoin (BTC) Price
This could be interesting, too:
Wayne Jones writes Argentina’s Mining Sector Pioneers Lithium Tokenization by Tapping Cardano
Wayne Jones writes Chinese Auto Dealer Dives Into Bitcoin Mining With 6M Investment
Wayne Jones writes Nigeria Arrests 792 in Landmark Crypto-Romance Scam Raid
CryptoVizArt writes Bitcoin Price Analysis: Is BTC In Danger of Falling to ,000 Soon?
Bitcoin (BTC) has climbed back to $44,000 for the first time in 19 months – nearly three years since first reaching that value in February 2021.
That doesn’t mean the asset is stagnant, however: on-chain analysis finds that much has changed about the nature of the crypto market, painting a much more bullish outlook this time around.
Bitcoin at $44k: Then VS Now
According to leading Glassnode analyst James Check, $44,000 marked the “absolute zenith of on-chain mania” back in January 2021.
The growing hype was visible by observing Bitcoin’s “Value Days Destroyed” Multiple – a Glassnode metric for detecting whether overheated or undervalued Bitcoin markets.
A higher multiple indicated that long-term investors are finally realizing profits on old, once-dormant coins. Spending of these older coins quickly overpowers demand, “ending euphoric bull runs” according to Glassnode.
In January 2021, Bitcoin’s Value Days Destroyed multiple tapped an all-time high of roughly 4.25. As of Tuesday, however, the multiple remained at a modest 1.52 – and hasn’t come close to its previous record for years.
“Here we are at $44k, and barely a squeak,” wrote Check in an X post on Tuesday. “HODLers are not relinquishing their coins. They demand higher prices.”
Reflexivity Research co-founder Will Clemente echoed the same sentiment, noting that Bitcoin is “far from overvalued based on historic readings.”
He cited Bitcoin’s MVRV ratio – another on-chain metric comparing Bitcoin’s market cap to its on-chain realized cap. The latter measures the total value of all coins based on the last time they were moved, giving a rough idea of each coin’s cost basis.
A high ratio suggests that investors are in major profit and likely to cash out soon. The ratio was at 3.81 back in January 2021, versus a more modest 2.07 this week.
Is the Market Overheated?
Nevertheless, Glassnode’s Check notes reason for caution: In a separate post that day, the analyst said he’d be “surprised if Bitcoin didn’t consolidate / correct near term.”
Bitcoin’s rise to $44,000 marks a 16% rise over the past seven days. According to Check, it’s also a major deviation from Bitcoin’s True Mean Market Price, which measures the average price at which investors acquired their current coins. As of Tuesday, that price is $31,231 – roughly 40% under the market price.
Check agreed with a commenter that it would be “healthy” for Bitcoin to consolidate close to $42,000 until the halving.
“A few months rest would allow investor cost bases to re-acclimate above the True Market Mean Price,” he said.
Bitfinex analysts recommended similar caution in their Alpha report this week, claiming a correction to $29,000 is in the realm of possibility.