A recent on-chain analysis from CryptoQuant suggests that the altcoin market may be on the verge of significant growth, with Ethereum (ETH) leading the way. The company highlighted that Ethereum’s Market Value to Realized Value (MVRV) indicator is rising at a faster pace than Bitcoin’s (BTC) MVRV.
A representative from CryptoQuant commented on social media platform X, stating, “This suggests the ETH market is heating up. Historically, when Ethereum surges, other alts tend to follow.” MVRV is a tool used to determine whether a digital asset is undervalued or overvalued by comparing its market capitalization with its realized capitalization, which is the total value of the assets at the purchase price.
ETH is currently trading at $3,478.60 and remains the second largest crypto asset by market value, despite sideways trading during the week. On the other hand, Bitcoin is facing a less promising situation, as it is trading below crucial support at $65,800, indicating a potential near-term price correction. CryptoQuant noted that a correction of 8% to 12% towards $60,000 is expected for BTC.
At the time of writing, Bitcoin is trading at $64,148, down almost 1.5% in the last 24 hours and more than 3% in the previous week. Julio Moreno, head of research at CryptoQuant, made additional observations on Platform X, indicating that the Bitcoin market is at its least optimistic point since September 2023, based on the market’s bull cycle indicator.
It’s important to note that the views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
