Ryan Selkis: “Indicators are talking about the upcoming growth of bitcoin”

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The founder and CEO of analytics firm Messari said that both fundamental and technical analysis point to Bitcoin growth in the medium term.

Ryan Selkis emphasized ininterview that the MVRV (Market Value to Realized Value) coefficient indicates the beginning of the Bitcoin accumulation phase. According to the analyst, most likely, the phase will last quite a long time, but then the price of the first cryptocurrency will begin to rise.

The MVRV indicator shows the ratio of market and real capitalization of an asset. Accordingly, if the indicator falls below 1, then the real value of the asset is higher than the market value and it’s time to buy it.

“When MVRV reaches 3, it ismeans it's time to sell the asset. When MVRV drops to 1, it is worth buying the asset. Where are we now? Similar indicators were in January 2015, December 2018 and March 2020. In general, I advise you to sell the kidney and buy it for everything,” Selkis said.

The founder of Messari recalled that in enoughBitcoin halving is in the near future - it is expected that the reward for miners will decrease in 18 months. In addition, only Bitcoin is perceived as a “real alternative” to gold:

“If the capitalization of Bitcoin and goldbecomes equal, this means an increase in the BTC rate by 25 times. In general, I would advise buying Bitcoin at 4% of the value of your investment in gold. If you look at the current market, Bitcoin could well cost $500 000.”

Previously, Ryan Selkis said that the current recession in the cryptocurrency market could benefit the entire industry.