The transparency of the Bitcoin blockchain leaves a deep impression. It is true that a single indicator is usually insufficient to draw conclusions about the status quo of the market. The combination, however, gives a fairly accurate picture of the current phase of Bitcoin market events – and that's optimistic.
This is the latest market report for the Paradigma Capital Cryptocurrency hedge fund.
It's spring in the country Bitcoin
Paradigma Capital uses a number of indicators that paint an upward picture of the bitcoin market. Above all, the so-called MVRV suggests to end the crypto-winter. The MVRV is an indicator that indicates whether the average of unrealized positions is negative or positive or if the majority of market participants would make a profit or loss by liquidating coins.
In May of this year, the MVRV index was again positive for the first time since November 2018 – and the rest since. As a result, the majority of Bitcoin investors are already profitable.
Productive profit ratio spent again positive
The analysis of the so-called profit ratio, or SPOR, goes in the same direction. Similar to MVRV, this indicator compares the ratio of the purchase price to the selling price. However, this indicator is limited to actual positions. The SOPR determines the price of each exit and puts it in relation with the Bitcoin price at the time of purchase. If the SOPR is> 1, the owner of the exit made a profit.
In the long term, this indicator targets zero percent. Logically, on average, the gross profit of one compensates for the gross loss of another. A short-term break from the zero percent mark, however, has repeatedly marked the beginning of a recovery phase in the past. This advance was observed by Paradigma Capital in April.
Hodler hesitates to give his treasures
Hodler is called Bitcoiner, which also carries their Bitcoin amassed by the longest winter crypto and would in no way sell all Bitcoin stocks. From the average time during which the unspent transaction outputs (UTXO) remain unchanged, so-called Hodl waves can be obtained. As the report indicates, the number of hodlers who keep their coins for more than two years is increasing. This circumstance indicates a growing long-term trust of those who have been in space for some time.
Disclaimer: The content described is for informational purposes only and does not constitute investment advice or solicitation to buy or sell any currency or other instruments. related financial markets.
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