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The founder and CEO of the analytical firm Messari said that both fundamental and technical analysis indicate the growth of bitcoin in the medium term.
Ryan Selkis emphasized in an interview that the MVRV (Market Value to Realized Value) coefficient indicates the beginning of the bitcoin accumulation phase. According to the analyst, most likely, the phase will last for quite a long time, but then the price of the first cryptocurrency will begin to grow.
The MVRV indicator shows the ratio of the market and real capitalization of an asset. Accordingly, if the indicator falls below 1, then the real value of the asset is higher than the market value and it's time to buy it.
"When MVRV reaches 3, it means that it's time to sell the asset. When the MVRV drops to 1, it is worth buying an asset. Where are we now? Similar figures were in January 2015, December 2018 and March 2020. In general, I advise you to sell a kidney and buy for everything," Selkis said.
The founder of Messari recalled that bitcoin halving is in the near future ― it is expected that the reward for miners will decrease in 18 months. In addition, only bitcoin is perceived as a "real alternative" to gold:
"If the capitalization of bitcoin and gold is equal, then this means a 25-fold increase in the BTC exchange rate. In general, I would advise buying bitcoin at 4% of the value of the invested capital in gold. If you look at the current market, bitcoin may well be worth $500,000."
Earlier, Ryan Selkis said that the current recession of the cryptocurrency market could benefit the entire industry.
