Understanding the Mayer Multiple
The Mayer Multiple, a key indicator in the cryptocurrency world, is currently whispering sweet nothings into the ears of long-term investors. This little metric measures Bitcoin’s price against its 200-day moving average, and guess what? It’s whispering at its lowest since last July when BTC dipped to around $29,000. As of February 22, it sits at a tantalizing 0.76, down 50% since that dizzying $69,000 high in November.
Why Should You Care?
Trace Mayer, the guy behind the Mayer Multiple, claims that anything under 2.4 spells out an investment opportunity. In fact, the lower the score, the more inviting it is for those looking to dive long. And here’s a head-scratcher: the Multiple hangs out above 0.8 about 87% of the time since 2011, making this current dip feel like a stranger at a party—awkward and unusual.
Charting the Peaks and Valleys
Now, let’s talk about that November peak when BTC was strutting its stuff at an all-time high. Interestingly enough, the Mayer Multiple didn’t come close to tipping its hat to historical highs and merely wobbled around a median of 1.42. This makes those $69,000 experiences feel rather mundane compared to past performances. Who knew price peaks could be so disappointing?
Hodlers Unite!
In a world where retail investors seem to be hitting the snooze button, many existing holders are opting to “hodl” (that’s crypto lingo for hold on for dear life, folks!). As of now, 60.998% of Bitcoin’s supply last moved over a year ago—an exhilarating 14-month high. As they sit in their comfy chairs, sipping coffee and waiting for the next bull run, you might wonder where the fresh deposits are at.
The Market’s Mood Swings
Cue the dramatic music: existing market dynamics are keeping potential retail investors at bay. With an evident decline in Taker Buy Volume (liquidity), the crypto scene is looking a bit like a ghost town—crickets were at a raucous party a year ago. Analytics from organizations like CryptoQuant hint that new deposits are waning like a half-empty soda can. Are we witnessing a game of musical chairs where only the market makers are shuffling around?
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