In recent news, rising tension in the middle east helped crude oil establish a bottom, while ironically, Vitalik Buterin, the co-founder of Ethereum, burned 7 billion in the ShibaInu token, which may have caused more deaths than any missile.
According to TradeFi vernacular, a 20% drop from recent highs constitutes a bear market, and since last week, crypto has passed 40% market-wide. Is this the end? I am doubtful that all is over, most forecasts mark this as the groundwork for our next leg up. So, below you will find three market top/bottom indicators to help assert that narrative.
"NUPL" illustrates how unrealized profit was recently drawn down (meaning investors took profits) rejecting BTC from entering the final stage of Euphoria - Greed:
According to the 'Stock-to-Flow', Bitcoin is undervalued (green indicates under value while red indicates over value):
And finally, 'MVRV' Market Value vs Realized Value, is an important chart to address because it is the only chart that indicates we have already hit a top (red bar). Although, at first glance the chart indicates the top is behind us, a second look may offer another perspective:
Capitulation or opportunity, whatever you call it, this is crypto and volatile swings must be expected. Are you buying this dip? Everyone on crypto Twitter is claiming this was long overdue unless they trade with leverage. Meanwhile, there are certain public figures that can make one tweet and the market dumps in response, proving the market’s immaturity, which ultimately may negate any rationality behind charts.
“To be clear, I strongly believe in crypto, but it can’t drive a massive increase in fossil fuel use, especially coal.” said Elon Musk in a recent tweet, which has sparked debate within the blockchain community on reducing greenhouse emissions, and which blockchain is most effective.
Many argue crypto is a great tool for humankind to achieve a sustainable future. There are green DApps, designed to deploy tree seedlings or streamline supply chain logistics, all with great effect at reducing future emissions. The statistics we have today, indicate mining Bitcoin is an added pressure on the environment, that is due to coal producing electricity. Meanwhile, our current world reserve standard, deemed by some as the petrodollar, emits much more carbon, as published by decrypt.
Rest assured, crypto is here to stay, and for those of us who are recently entering the industry, one seriously important factor is, who do I trust? And that is where ChainMyne comes in. This past week we saw Binance, Coinbase, and other popular exchanges lockout users from their assets, as we predicted in our last article.
Here at ChainMyne, we believe cryptocurrencies offer endless opportunities, and exchanges should express that by being open to everyone at all times. As a proud Canadian exchange, ChainMyne is building towards a new future of financial independence, transparency, trust, and accessibility. Start trading with ChainMyne today and experience for yourself how we provide our clients with the best-in-class customer service, a tailored personalized experience, and easy access to building wealth … all through a secure and reliable platform!