Potential Bitcoin Bull Run Incoming According to This Key Metric

According to a blog post from crypto analytics company IntoTheBlock, a specific metric is hinting that Bitcoin may be entering a new phase: a bull market cycle.

This critical metric is Bitcoin’s market-value-to-realized-value (MVRV) ratio. When explaining its significance, the firm noted, “When the MVRV ratio drops below 100%, it suggests Bitcoin’s pricing is less than the average acquisition cost for its holders. Historically, bear markets have hit a low when MVRV fluctuates between 70% to 80%. Notably, every instance where the MVRV climbed above 100% after dipping below it signified the dawn of a bull market.”

Considering this data, IntoTheBlock deduces that the current Bitcoin bull run initiated in January. Should the trend continue, Bitcoin could witness significant appreciation, possibly even matching the 300%+ MVRV seen in previous bull cycles. This observation ties back to various on-chain indicators suggesting that Bitcoin is still in its bull market infancy.

For those unfamiliar, the MVRV measures the difference between an asset’s market cap and its realized capitalization – essentially comparing Bitcoin’s present market value against the price at which they were initially acquired.

Yet, as with all analyses, there’s room for uncertainty. IntoTheBlock advises caution, indicating that past MVRV and BTC patterns might not necessarily replay this cycle. “Although past trends don’t guarantee future Bitcoin returns, the convergence of positive supply and demand factors does hint at the possibility of a new Bitcoin cycle.”

As a closing snapshot, Bitcoin currently sits at $34,085 per CoinMarketCap, marking an impressive near 14% growth over the past week.