Most crypto assets have been shedding value of late. Recent pessimistic developments like Silvergate’s shut down, have only deepened the market’s wounds further. On Thursday, the aggregate valuation of all the assets stood below the $1 trillion mark, at $995.17 billion to be precise.
Bitcoin’s price has been hovering below the $22k threshold, while Ethereum tumbled below $1.6k. Unlike the top two’s 2% depreciation, other Altcoins from the market like Shiba Inu and Cardano have shed 3%-6% of their respective values over the past day.
The mid-term landscape also seems to be similar. Blockchain Center‘s Altcoin Season Index pointed out that the market is currently no where close to its “Altcoin Season.” According to the thumb rule, if 75% of the top 50 coins outperform Bitcoin in a period of 90 days, it is considered to be an Altcoin season.
The press time reading of 24 and the pendulum oscillating towards “Bitcoin Season,” indicated that BTC currently has an edge over top Altcoins at the moment. However, this is a blessing in disguise for the latter set of coins.
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Disguised opportunity for buyers
Altcoins have been bleeding for quite some time now. With traders realizing losses, many of them have started flashing underbought signals. Like shown below, most assets have been revolving in their “opportunity zone” currently. This indicates that it might finally be the right time to accumulate. Confirming the same, Santiment tweeted,
“If you have been awaiting the time to buy Altcoins when there is blood in the streets, our MVRV model indicates that this time has arrived.”
MVRV is typically the market value of an asset relative to its realized value. This indicator helps to indicate if the price is above or below the “fair value.” Retrospectively, the MVRV also helps to assess the profitability.
Even though the current scenario seems to be ideal for accumulation, the analytics platform went on to caution investors by clarifying,
“Prices can of course still fall further, but this is the most crypto assets have been in opportunity zones since early January.”
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