Historic Accumulation Phase: Bitcoin Investors Take Advantage of Buy Signal

• Messari CEO Ryan Selkis believes that Bitcoin investors are entering a historic accumulation phase.
• Market Value to Realized Value (MVRV) indicator suggests that investors are in the early stages of a long-term accumulation.
• If the MVRV is over 3, it is time to sell Bitcoin immediately, and if it is below 1, it is time to begin collecting Bitcoin.

In an interview with the financial journal Barron’s, the founder and CEO of the cryptocurrency intelligence service Messari, Ryan Selkis, discussed the current state of Bitcoin (BTC). According to Selkis, on-chain signals are indicating that investors may be entering a historic accumulation phase.

The Market Value to Realized Value (MVRV) indicator suggests that investors are in the early stages of a long-term accumulation. This is because investors‘ conduct is comparable to how it was when it bottomed out in past negative cycles. MVRV is a metric that may be used to determine whether or not a cryptocurrency is currently overpriced. The MVRV-Z Score is applied to the „fair value“ of a cryptocurrency, which is calculated by subtracting its market cap from its realized cap.

The score then determines whether or not the cryptocurrency is now overpriced or undervalued. According to Selkis, if the MVRV is over 3, it is time to sell Bitcoin immediately, and if it is below 1, it is time to begin collecting Bitcoin. This applies to the whole history of Bitcoin.

Selkis went on to say that he believes investors have a “unique opportunity” right now to buy Bitcoin at a lower price than it was two or three years ago. He said that he has been recommending to his clients that they begin accumulating Bitcoin now, as the MVRV signal is indicating a buy signal.

Selkis also discussed the current state of the crypto markets, noting that the total market cap is still far from its all-time high and is still in a bear market. He believes that the market is still in a state of flux and that it will take a few more months for it to recover.

Selkis is positive about the long-term prospects of Bitcoin and believes that it will eventually reach a new all-time high. He believes that the current bear market is an ideal time to accumulate Bitcoin at a lower price, as the MVRV signal is indicating a buy signal.

It remains to be seen how the markets will react to these signals and whether or not Bitcoin will reach a new all-time high in the near future. However, it is clear that investors are taking advantage of the current situation and are beginning to accumulate Bitcoin. It will be interesting to see if this trend continues and if Bitcoin can reach a new all-time high in the future.

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