BTC bottom reached? That’s what the MVRV indicator says

The air is slowly getting thin for Barry Silbert and his Digital Currency Group (DCG). According to the latest reports, DCG is closing its wealth management division HQ Digital as of January 31st. That reported the information first. Of course, HQ Digital is not a forest and meadow side project of DCG, but currently manages assets of 3.5 billion US dollars.

This, as well as the ultimatum given by Cameron Winklevoss to repay millions in debt, are pushing the DCG to the brink of insolvency. But the Bitcoin course is also suffering from the never-ending turmoil in the crypto space. As long as the risks of a DCG bankruptcy are not off the table, an upswing is unlikely for the time being. After all, trust in the supporting institutions in the sector has seldom been damaged.

Bitcoin hashrate is recovering

At least: Network security is currently not at risk. Finally, the Bitcoin hash rate is currently consolidating again. While it recently fell significantly (and with it the difficulty), it has been rising again since the local bottom at the end of December.

As of press time, the accumulated computing power on the Bitcoin network is 247 exahashes per second.

Nevertheless: Large mining companies are not yet off the hook because of the low price level. Most recently, Core Scientific announced that it had disposed of 37,000 ASICs from the inventory of bankrupt lender Celsius.

Hit the ground – or not?

Anyone who is invested in Bitcoin is currently asking one question above all: Is this already the bottom?

While the short-term course of the notoriously volatile cryptocurrency is difficult to predict, there are many indications that the Bitcoin bottom has already been reached or is at least close. The MVRV indicator provides an indication.

After all, the MVRV Z-Score has been in undervalued territory (shown here in green) for quite some time. Although it is common for BTC to stay there for a while.

However, with more than six months of constant undervaluation, a trough could well be forming at the moment. In other words: if you are brave, there are currently enticing introductory courses.

The MVRV measures the relationship between market capitalization and the so-called realized market cap, i.e. the actual value stored in the network.

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