This indicator hit -50.09% in mid-June and currently sits at -48.23%
As shared by the crypto analyst Ali Martinez, Santiment’s MVRV index, which timed Bitcoin’s market bottom for the past two bear cycles, is flashing again. Bitcoin’s 365D MVRV fell to -56.85% and -55.62% in January 2015 and December 2018, respectively, to mark the end of the bear market. This indicator reached 50.09% in mid-June and currently stands at -48.23%.
The value of MVRV (market value to realized value) gives an idea of how much an asset is overvalued or undervalued.
According to Glassnode, after peaking at $69,000 in November 2021, the Bitcoin market has gone through two different phases of capitulation. The first phase was triggered by the force of Luna Foundation Guard selling over 80,000 BTC, and the second happened two weeks ago during the market crash.
Alex Kruger, a crypto-analyst and economist, also believes that Bitcoin might have capitulated during the market downturn two weeks ago. The analyst cited the fact that trading volumes peaked at this time, signaling capitulation, which produces significant bottoms.
The formation of the bear market floor in previous cycles is consistent with the current state of macro indicators for Bitcoin, ranging from technical to on-chain, which are at historically low levels. However, due to the current macroeconomic environment, all historical theories and models may be put to the test when establishing a bear market floor for Bitcoin.
Bitcoin whales add 30,000 BTC to holdings
As shared by cryptoanalyst Ali Martinez in the past week, addresses with 100 to 10,000 BTC added roughly 30,000 BTC to their holdings.
Over the past week, Glassnode has reported that shrimp, or addresses with less than one BTC, have accumulated alongside whales, or addresses with over 1,000 BTC in the incredibly tough market conditions of 2022. .
The on-chain analytics firm observed these large entities have been rapidly increasing their balance, buying 140,000 BTC from exchanges each month. They have thus increased their balance to over 8.69 million BTC, or 45.6% of the BTC supply. As reported by U.Today, retail holders or addresses with less than 1 BTC added 113,884 BTC to their holdings in 2022.
Bitcoin was trading slightly at $19,438 at press time.
