Bitcoin BTC/USD has surged to $64,000, but a key metric indicates that it’s still in a “prime buy zone,” according to a prominent crypto analyst.
What Happened: Ali Martinez, a well-known crypto analyst, pointed out that despite Bitcoin’s recent price surge, the MVRV 90-day Ratio suggests that the cryptocurrency is still in a favorable buying position.
“Despite #Bitcoin’s recent surge from $57,000 to $64,000, the MVRV 90-Day Ratio indicates that $BTC remains in a prime buy zone!” Martinez wrote.
As per Martinez, the MVRV ratio, which divides an asset's market capitalization by its realized capitalization, is a crucial metric in the crypto space. A higher MVRV ratio typically indicates a greater potential profit, potentially leading to increased selling pressure.
See Also: Dogecoin Is ‘Primed For Higher’ But Pepe Is ‘On A Moon Mission,’ Exclaims Trader
Why It Matters: This news comes in the wake of a series of significant events in the crypto space. On Saturday, Tesla Inc. TSLA officially incorporated Dogecoin DOGE/USD as a payment option, leading to a 21% surge in the meme coin’s value.
Moreover, on Sunday, in the wake of dismal U.S. economic data, crypto analyst Michaël van de Poppe forecasted a substantial rally in the altcoin markets. Van de Poppe believes that these economic indicators will compel the Federal Reserve to activate the money printers to bolster the job market, leading to a rally in risk-on assets.
Meanwhile, the SEC has postponed its decision on a proposed exchange-traded fund focused on carbon credit futures contracts and Bitcoin, indicating the regulatory uncertainty that still looms over the crypto market.
Price Action: Bitcoin is currently priced at $64,234, marking a 0.32% increase over the past 24 hours. Notably, its year-to-date performance shows a substantial 45.42% rise in value, according to the data from Benzinga Pro.
Read Next: ‘Dogecoin Killer’ Shiba Inu Burn Rate Spikes 800% Amid New Margin Pair Listing On Kraken
Image Via Pixabay
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
