In the world of cryptocurrencies, trends often have a way of repeating themselves, for better or for worse. One such trend occurs when an ominous Bitcoin price metric imitates a move that previously resulted in a significant -25% FTX crash. A predicament that last materialised before November 2022 has now returned, centring around the BTC rate of $25,726.
According to James Straten from CryptoSlate, the Short to Long-Term Realized Value (SLRV) ratio made a recurrent motion, highlighting a likely sales growth in “older” Bitcoins since mid-August. This might indicate that market spectators are mentally preparing for a drop to $23,000. It appears the gravity of Bitcoin’s plunge in August could have been far more devastating than it was.
David Puell and ARK Invest devised this SLRV ratio, which uses the popular HODL Waves metric, indicating Bitcoin on-chain velocity. This ratio is determined by taking coins that moved in the past 24 hours and dividing them by those which moved between six and twelve months prior. Intriguingly, the metric also comprises two moving averages — the 30-day and 150-day trendlines — known to correlate with crucial BTC price events. Here, we need to give precedence to the disclosure that every investment and trading move involves risk, so speculation around these metrics should not supersede thorough research.
Simultaneously, the realm of stablecoins is experiencing its unique development. For instance, Circle’s USD Coin (USDC) has launched natively on both Base and Optimism networks. This event enables Circle account holders to seamlessly transition USDC transfers from their accounts to Base or Optimism. An enhancement that was missing at the time of Coinbase’s Base network launch on August 9. However, despite these advancements, many decentralized exchanges continue to navigate the older version of the coin.
In a bid to regain lost market share to Tether (USDT) during early 2023, Circle aims to stay competitive amidst the inception of new stablecoins. Amidst these changing dynamics, the crypto market continues its journey of being a challenging, yet captivating realm. To quote an old Wall Street saying — as much as things change, they remain the same. Only with continuous upheaval and advancement does the crypto market hold fast to its essence. And for enthusiasts, it’s always about staying vigilant and understanding the subtleties of these trends.
Source: Cointelegraph
