Many crypto traders are wondering – Taurus market is really over? Why is the crypto market so sluggish lately? When you look at how far some of the subcoins are from the highest levels of all time, you will notice that they are bear market numbers. For example, Pepe breast breast coin decreases from 75%, while solana is around 60%.
During the bear market, subcoins usually fell to 80% to 90% of their ADH, so we’re not there yet, but we get there if this market performance continues.
Crypto Quant CEO, which Young Ju focused on the situation.
Cover and Market Value
The Young Ju believes that the Bitcoin bull cycle ends and this analysis is based on an important chain meter called the cover. This concept deals with Bitcoin as “purchasing” and Bitcoin as “sales ındaki into a blockchain wallet. This allows analysts to estimate an average cost basis for each wallet.
When you multiply this cost basis with the amount of BTC, you get the total cover. Many experts think that this figure represents the real capital entering the Bitcoin market through verifying chain activity.
This is significantly different from the market value calculated according to the final transaction price in the stock markets. A widespread misunderstanding, when someone buys Bitcoin worth 10 dollars, the market value is only increased this amount. In fact, prices are determined by the balance between the purchase and sales edition in order books.
During low sales pressure periods, even small purchases can significantly make the price and market value significantly higher. Companies like Microstrategy have benefited from this dynamics by giving convertible bonds to purchase Bitcoin, which led to paper gains that exceeded real investments.
Bear Market Signals
The relationship between the boundary and market value realized gives an important idea about market conditions. When the cover grows, but the market value remains stagnant or decreases, indicates that money flows into the market without corresponding price increases – a classic bear market indicator.
On the contrary, when Bitcoin’s Hat The market value remains straight as it rises, shows that the minimum new capital makes the prices higher and that it is a sign of rise.
Currently, we are witnessing the old script. Capital continues to enter the market, but prices do not respond proportional. This model typically characterizes the bear markets.
While some critics argue that chain data are limited in capturing all capital flows, most of them are reflected on the chain, including major movement, change activities, custody wallet operations and ETF -related operations.
In essence, when a small amount of capital can increase upwards, we are in a bull market. When important capital prices cannot raise, we are in the bear area. The existing data clearly points to the second state.
Although sales pressure can relax at any time, the historical molds show that meaningful market reversal requires at least six months to typically develop and makes a short -term rally according to Young Ju’s analysis.
Read also: Kaspa prepares a final return while Bitcoin sleeps
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