{"id":633246,"date":"2024-08-06T09:00:42","date_gmt":"2024-08-06T09:00:42","guid":{"rendered":"https:\/\/www.uniquehot.com\/?p=633246"},"modified":"2024-08-05T18:28:23","modified_gmt":"2024-08-05T18:28:23","slug":"bitcoin-mvrv-lowest-ftx-crash-signal-buy","status":"publish","type":"post","link":"https:\/\/www.uniquehot.com\/bitcoin-news\/bitcoin-mvrv-lowest-ftx-crash-signal-buy\/","title":{"rendered":"Bitcoin MVRV Lowest Since FTX Crash, Signal To Buy?"},"content":{"rendered":"

On-chain data shows the Bitcoin Market Value to Realized Value (MVRV) ratio has observed a plunge alongside the latest price crash.<\/p>\n

Bitcoin 30-Day MVRV Ratio Is Now At Lowest Levels Since FTX Collapse<\/h2>\n

As explained by analyst Ali Martinez in a new post<\/a> on X, the 30-day MVRV ratio has just gone through a sharp drop. The “MVRV ratio<\/a>” refers to a popular on-chain indicator that, in short, tells us about how the value held by the Bitcoin investors (that is, the market cap) compares against the capital put in by them (the realized cap<\/a>).<\/p>\n

When the value of this ratio is greater than 1, it means the investors as a whole are carrying an unrealized profit right now. On the other hand, it being under the mark suggests the dominance of loss in the market.<\/p>\n

Related Reading: Bitcoin Price Crashes To $49,000: Key Reasons Explained<\/a><\/div>\n

In the context of the current topic, the MVRV ratio for the entire market isn’t of interest, but that of just a segment of it: the investors who bought their coins within the past 30 days.<\/p>\n

Now, here is a chart that shows the trend in the 30-day Bitcoin MVRV ratio over the past couple of years:<\/p>\n

\"Bitcoin
The value of the metric appears to have plunged deep into the negative territory | Source: @ali_charts on X<\/a><\/figcaption><\/figure>\n

Note that the 30-day Bitcoin MVRV ratio here is displayed as a percentage, with the zero mark essentially taking the same role as the 1 value in the normal version.<\/p>\n

From the graph, it’s visible that the indicator had shot up to high levels earlier in the year as the asset had witnessed a rapid surge to a new all-time high (ATH). In the consolidation period that had followed this ATH, though, the metric had fallen to oscillation about the zero mark.<\/p>\n

This sideways trajectory, in the price and the indicator, both, has now finally been broken, as the cryptocurrency has observed a crash. The 30-day MVRV ratio has now slumped to sharp negative values of 17%, meaning that the average investor who bought in the past month is 17% in the red right now.<\/p>\n

As is apparent in the chart, the last time that the indicator plummeted this low was in November 2022, when the Bitcoin price crashed following the collapse of the cryptocurrency exchange FTX<\/a>. “That period marked a bottom and an excellent buying opportunity,” notes the analyst.<\/p>\n

Related Reading: Bitcoin RSI Goes Bearish For The First Time Since August 2023, Will It Crash Below $40,000?<\/a><\/div>\n

Generally, when investor profits balloon too much, a top can become likely, as the chances of widespread profit-taking become significant. The price ATH earlier in the year also formed when the indicator had a high value.<\/p>\n

In times of high losses, though, selling could be assumed to have reached a state of exhaustion, meaning that a rebound could be probable. Bitcoin saw this in effect during the FTX crash, but it only remains to be seen whether a similar fate also lies in store for it this time.<\/p>\n

BTC Price<\/h2>\n

The early signs of a potential rebound may already be here as the Bitcoin price has made recovery to $54,400 from its low under $50,000.<\/p>\n

\"Bitcoin
Looks like the price of the coin has crashed over the past day | Source: BTCUSD on TradingView<\/a><\/figcaption><\/figure>\n
Featured image from Dall-E, Santiment.net, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"

On-chain data shows the Bitcoin Market Value to Realized Value (MVRV) ratio has observed a plunge alongside the latest price crash. Bitcoin 30-Day MVRV Ratio Is Now At Lowest Levels Since FTX Collapse As explained by analyst Ali Martinez in a new post on X, the 30-day MVRV ratio has just gone through a sharp drop. The “MVRV ratio” refers to a popular on-chain indicator that, in short, tells us about how the value held by the Bitcoin investors (that is, the market cap) compares against the capital put in by them (the realized cap). When the value of this ratio is greater than 1, it means the investors as a whole are carrying an unrealized profit right now. On the other hand, it being under the mark suggests the dominance of loss in the market. Related Reading: Bitcoin Price Crashes To $49,000: Key Reasons Explained In the context of the current topic, the MVRV ratio for the entire market isn’t of interest, but that of just a segment of it: the investors who bought their coins within the past 30 days. Now, here is a chart that shows the trend in the 30-day Bitcoin MVRV ratio over the past couple of years: Note that the 30-day Bitcoin MVRV ratio here is displayed as a percentage, with the zero mark essentially taking the same role as the 1 value in the normal version. From the graph, it’s visible that the indicator had shot up to high levels earlier in the year as the asset had witnessed a rapid surge to a new all-time high (ATH). In the consolidation period that had followed this ATH, though, the metric had fallen to oscillation about the zero mark. This sideways trajectory, in the price and the indicator, both, has now finally been broken, as the cryptocurrency has observed a crash. The 30-day MVRV ratio has now slumped to sharp negative values of 17%, meaning that the average investor who bought in the past month is 17% in the red right now. As is apparent in the chart, the last time that the indicator plummeted this low was in November 2022, when the Bitcoin price crashed following the collapse of the cryptocurrency exchange FTX. “That period marked a bottom and an excellent buying opportunity,” notes the analyst. Related Reading: Bitcoin RSI Goes Bearish For The First Time Since August 2023, Will It Crash Below $40,000? Generally, when investor profits balloon too much, a top can become likely, as the chances of widespread profit-taking become significant. The price ATH earlier in the year also formed when the indicator had a high value. In times of high losses, though, selling could be assumed to have reached a state of exhaustion, meaning that a rebound could be probable. Bitcoin saw this in effect during the FTX crash, but it only remains to be seen whether a similar fate also lies in store for it this time. BTC Price The early signs of a potential rebound may already be here as the Bitcoin price has made recovery to $54,400 from its low under $50,000. Featured image from Dall-E, Santiment.net, chart from TradingView.com<\/p>\n","protected":false},"author":542,"featured_media":633265,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[428,85375,506,92841,86686,735,1119,1144],"class_list":["post-633246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-buy-signal","tag-bitcoin-crash","tag-bitcoin-ftx-crash","tag-bitcoin-mvrv-ratio","tag-bitcoin-signal","tag-btc","tag-btcusd"],"acf":[],"yoast_head":"\nBitcoin MVRV Lowest Since FTX Crash, Signal To Buy?<\/title>\n<meta name=\"description\" content=\"On-chain data shows the Bitcoin Market Value to Realized Value (MVRV) Ratio has observed a plunge alongside the BTC crash to $52,000.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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Verma","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.uniquehot.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/3d9c67b0b4a94fb480d44f29de96266e?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3d9c67b0b4a94fb480d44f29de96266e?s=96&d=mm&r=g","caption":"Keshav Verma"},"description":"Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor\u2019s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn\u2019t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn\u2019t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.","sameAs":["https:\/\/www.linkedin.com\/in\/keshavverma29\/","https:\/\/x.com\/https:\/\/twitter.com\/keshavvarma29"],"url":"https:\/\/www.uniquehot.com\/author\/hououinkyouma29\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Bitcoin MVRV Lowest Since FTX Crash, Signal To Buy?","url":"http:\/\/www.uniquehot.com\/bitcoin-news\/bitcoin-mvrv-lowest-ftx-crash-signal-buy\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/www.uniquehot.com\/bitcoin-news\/bitcoin-mvrv-lowest-ftx-crash-signal-buy\/"},"thumbnailUrl":"https:\/\/www.uniquehot.com\/wp-content\/uploads\/2024\/08\/btc_d93c15.png?resize=200%2C200","image":{"@type":"ImageObject","url":"https:\/\/www.uniquehot.com\/wp-content\/uploads\/2024\/08\/btc_d93c15.png?fit=1792%2C1024"},"articleSection":"Bitcoin News","author":[{"@type":"Person","name":"Keshav Verma"}],"creator":["Keshav Verma"],"publisher":{"@type":"Organization","name":"NewsBTC","logo":"https:\/\/www.uniquehot.com\/wp-content\/uploads\/2020\/06\/cropped-cropped-cropped-favicon.png?w=32"},"keywords":["bitcoin","bitcoin buy signal","bitcoin crash","bitcoin ftx crash","bitcoin mvrv ratio","bitcoin signal","btc","btcusd"],"dateCreated":"2024-08-06T09:00:42Z","datePublished":"2024-08-06T09:00:42Z","dateModified":"2024-08-06T09:00:42Z"},"rendered":"<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Bitcoin MVRV Lowest Since FTX Crash, Signal To Buy?\",\"url\":\"http:\\\/\\\/www.uniquehot.com\\\/bitcoin-news\\\/bitcoin-mvrv-lowest-ftx-crash-signal-buy\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/www.uniquehot.com\\\/bitcoin-news\\\/bitcoin-mvrv-lowest-ftx-crash-signal-buy\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/www.uniquehot.com\\\/wp-content\\\/uploads\\\/2024\\\/08\\\/btc_d93c15.png?resize=200%2C200\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/www.uniquehot.com\\\/wp-content\\\/uploads\\\/2024\\\/08\\\/btc_d93c15.png?fit=1792%2C1024\"},\"articleSection\":\"Bitcoin News\",\"author\":[{\"@type\":\"Person\",\"name\":\"Keshav Verma\"}],\"creator\":[\"Keshav Verma\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"NewsBTC\",\"logo\":\"https:\\\/\\\/www.uniquehot.com\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/cropped-cropped-cropped-favicon.png?w=32\"},\"keywords\":[\"bitcoin\",\"bitcoin buy signal\",\"bitcoin crash\",\"bitcoin ftx crash\",\"bitcoin mvrv ratio\",\"bitcoin signal\",\"btc\",\"btcusd\"],\"dateCreated\":\"2024-08-06T09:00:42Z\",\"datePublished\":\"2024-08-06T09:00:42Z\",\"dateModified\":\"2024-08-06T09:00:42Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/uniquehot.com\/p.js"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.uniquehot.com\/wp-content\/uploads\/2024\/08\/btc_d93c15.png?fit=1792%2C1024","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/posts\/633246"}],"collection":[{"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/users\/542"}],"replies":[{"embeddable":true,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/comments?post=633246"}],"version-history":[{"count":0,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/posts\/633246\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/media\/633265"}],"wp:attachment":[{"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/media?parent=633246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/categories?post=633246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/tags?post=633246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}