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CoinMetrics analyst: ETH may be undervalued compared to Bitcoin

According to AMBCrypto, Nate Maddrey, senior research analyst at CoinMetrics, talks about Bitcoin and other altcoins, and how they perform in 2019. Nate Maddrey pointed out that although Bitcoin has risen by about 90% in 2019, Ethereum has fallen by almost 5% compared to the previous year, and said “This is the first time we have really seen the kind of separation between Bitcoin and Ethereum “. When asked why Bitcoin performed better than most altcoins, he explained that this was mainly due to the bear market, where people tend to merge and sell some smaller cryptocurrencies. Maddrey also said that there is growing evidence that Bitcoin is indeed being used as a store of value.
Nate Maddrey also talked about the “Capped Cap”, a metric created by CoinMetrics that calculates the value of each bitcoin by price during the last transfer of bitcoin. He also mentioned the ratio of market value to realized value (MVRV) to get an idea of ​​how healthy investors’ average portfolios are. “MVRV above 1 means the market value is higher than the realized market value,” he said. This means that ordinary investors will make a profit if they sell. Conversely, if the MVRV is below 1, investors will sell at a loss. Maddrey analyzed that Bitcoin’s realization cap has increased by 27% in 2019, while ETH, XRP and BCH have fallen by 15% -20%. He also mentioned that by the end of this year, Bitcoin’s MVRV ratio is about 1.3, while ETH is 0.61. “There are many explanations for this, but our usual opinion is whether investors are profitable or loss.” However, Maddrey also pointed out that another explanation may be that ETH is a bit undervalued compared to Bitcoin.

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