Cryptocurrency analysts found out how low bitcoin will fall

Cryptocurrency experts have conducted a study based on the MVRV indicator, which measures the ratio of market capitalization to market capitalization, to find out how low bitcoin can go.

According to analysts, it is impossible to determine exactly what the price of a certain digital asset will be, as the situation on the cryptocurrency market is always unpredictable. It is worth paying attention to Ethrereum, which after The Merge not only failed to reach the $ 3000 mark but also dropped below $ 1200. However, using MVRV (Market Cap versus Realized Cap), analysts were able to name the estimated minimum price.

Currently, according to MVRV, the most realistic minimum value of the Cryptocurrency is $ 17,500, which is the price predicted by Arthur Hayes, the former CEO of BitMEX. «What will happen to dollar liquidity? By the end of this year, the Fed is looking to reduce the size of its balance sheet, and the Treasury is issuing a large amount of debt to finance the government. Both of these actions remove liquidity from the system. This will lead to a drop in momentum and a collapse of the hryvnia. So, we are preparing for lows of $ 17,500,» Arthur Hayes wrote in his recent article.

As for the MVRV indicator, it is a ratio obtained by dividing the market capitalization by the realized capitalization. The indicator is based on daily updated data. The MRVR indicator and its derivatives are used to determine long-term trends, identify accumulation and distribution cycles. Despite its popularity, MVRV is an experimental tool for analyzing the cryptocurrency market.

It is worth noting that the value of the flagship cryptocurrencies BTC and ETH has increased sharply over the day. on September 27, 2022, bitcoin rose by 7.48% and is trading at $ 20,188. The total supply of coins for the leading cryptocurrency amounted to $ 387.19 billion.