A recent analysis by cryptoQuant, a crypto data provider that offers comprehensive insights and data for crypto trading, has revealed that 2023 is the best time to accumulate Bitcoin.
Author at CryptoQuant Dan Lim made this assertions in his latest Bitcoin analysis, citing the BTC market value to realized value (MVRV) ratio.
The MVRV ratio is a prominent indicator that assists traders in determining whether an asset is overvalued or undervalued at its current position. The indicator also helps to identify the dominant trend in selling pressure on investors.
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Dan revealed that the MRV ratio rose above the decisive 1.0 mark on the 19th of last month. He noted that the indicator currently has a value of 1.112 which is still above the undervalued territory, according to historical trends.
Dan further revealed that the BTC market has never witnessed a subsequent fall below the 1.0 mark immediately after breaking above it. Nonetheless, he acknowledged bitcoin’s recent correlation with traditional finance, and the potential impact of the macro headwinds, encouraging investors to employ a long-term split-buy technique to hedge against any unforeseen event.
He added that when the bull market eventually comes, the crypto community will retrospectively look back at 2022 and 2023 as the period that presented the most attractive Bitcoin buy zones.
Despite Bitcoin poor performance in the previous year, analysts predict that in 2023, the crypto asset will still experience value growth. Some indicators suggest that with Bitcoin trading low at this period, now is the ideal time to use the bear market to acquire the crypto asset.
Bitcoin has no doubt started to recover from the months-long losses which saw it trading as low as $16,000, as the crypto asset price started the new year on a positive note with a surge in price, currently trading at $22,721.
It is interesting to note that multiple analysts have predicted that Bitcoin’s next halving event, scheduled for 2024, would dramatically ‘push’ the price of the digital asset, including Bloomberg’s senior commodity expert Mike McGlone who believes Bitcoin could hit $100,000 at around that time.
Also, in a recent publication on Tekedia, serial investor and author of “rich dad poor dad” Robert Kiyosaki projected that Bitcoin would trade at $500,000 by 2025, which he disclosed will occur, following the printing of billions of fake money by the fed.
Kiyosaki noted that the U.S. Federal Reserve’s wrong monetary policy of forcing the regulator to print billions of fake money will lead to a surge in the price of several crypto assets due to a loss of faith in the U.S. dollar, which will see gold, silver, and Bitcoin emerge as the alternatives.
In the meantime, Bitcoin has lately been demonstrating signs of renewed hope as its price continues to surge. The crypto asset is reacting to every move of the Fed meeting which is happening in the U.S. amid cooling inflation. However, Bitcoin pro investors are eagerly waiting for more gains and looking for it to stabilize beyond $23,000 levels.