Bitcoin Metrics Reach Bullish 2023 Landmarks

Bitcoin Metrics Reach Bullish 2023 Landmarks

Last Friday, the market value of BTC had gone up to the highest level that it has been able to reach so far in this year. This event has taken place now, after almost more than the span of a whole year. The market value of the digital currency had risen to above $31,400 a coin. This is the highest value that has been achieved by BTC since the year 2022 before it clipped back its gains. BTC has gained in value almost by about an estimated of 87% this year. Its most recent gains have finally come after a long period of time. This rise in the market value of BTC reportedly had taken place after there was a surge of interest in the world of blockchain and cryptocurrency from several commercial and industrial giants. Thus, with the increase in its popularity amongst industrial players and commercial venturers, BTC is gaining not only fame but also is rising in value.

Last month, we saw that the founder of bitcoin hedge fund Capriole Investments, Charles Edwards, reported that the market value of Bitcoin had hit its electrical cost. BTC trading history has been witness to the “generational investment opportunity” generated in the digital currency market, every time this phenomenon has taken place in the past. 

Another popular BTC metric model which is considered while analyzing the growth made by the digital currency, is the Market Value to Realised Value (MVRV) Ratio. This value figure is essentially the ratio of the Market value of Bitcoins to the Realised Value of Bitcoins. The Realised Value of BTC is fundamentally the average purchase cost of all the bitcoins that are being circulated in the digital currency market. Therefore, this ratio is the ratio of the current purchase cost of Bitcoins that are being circulated in the cryptocurrency market, to the price that they are being sold at in the market.

A recent report by the famous Financial Consultancy firm, Glassnode, showed its readers that the current realized price of BTC is $20,300. This is the highest MVRV that BTC has been able to achieve since the collapse of the famous blockchain firm FTX in the November of 2022. Additionally, Glassnode reported that this value is only continuously rising. The MVRV of BTC is trading at a ratio of 1.4 right now, which positively signals the beginning of a recovery phase, Glassnode added in their report.

The last time that the Realised Profit and Loss levels of BTC had fallen this much, was in October 2020. This event marked the beginning of the bull market for bitcoin traders during that time. From here, it was almost a ceaseless rise. This is because just after this, the prices of BTC had hiked from $11,000 to over $30,000 in value, that too in the matter of just a few months.

If a similar climb happens again now in the MVRV value of BTC, it can result in a 200% rise in the market value of BTC, over the coming months. A 200% increase in value from the current market level would mean that BTC might be able to peak above $60,000 in its market value, which is more than double of the current market value figure of BTC. At the time of writing, the value of BitCoin is running at a value of almost $23, 300, as per relevant sources.

For the Latest Crypto News follow the Coinography and Subscribe our YouTube channel or follow us on social media platforms like Twitter, Facebook, Instagram and Linkedin.

You Might Also Like

About Maria Morgan

Maria Morgan is a full-time cryptocurrency journalist at Coinography. She is graduate in Political Science and Journalism from London, her writing is centered around cryptocurrency news, regulation and policy-making across the glob.

View all posts by Maria Morgan →