The crypto market has been remarkably difficult for investors this year, with BTC and ETH prices currently around 65% below their highs. June was the worst month since 2011 for both assets. However, there is reason to be optimistic in Julysince both assets are making profits.
Even so, this year’s reduction was actually the least severe registered.
Although this crypto winter has seen less decline than previous bear markets, it has seen many large capitulations and the restructuring of a market.
Bitcoin and Ethereum have been trading below their respective realized prices since mid-June. The average period to fall below the realized price for historic Bitcoin bears has been 180 days, with the exception of March 2020, when it only took seven days.
We look at the MVRV ratio, which measures changes in market value (MV, spot price) for three types of Bitcoin cohorts, including general market, short-term holders, who generally react to market volatility by spending their coins, and in the long run. holders. We can see that title holders, who are statistically less likely to spend their coins, currently have coins below their base cost.
It is common for all three cohorts to be below the cost base during bear market lows. Thus, Bitcoin could be approaching a potential market bottom.