There have been recent turbulences for Bitcoin and altcoins, pointing to a significant regression. Accordingly, many investors are now looking after the decline. Accordingly, it is a question of whether there will be a return for altcoins. New data from market intelligence firm Santiment suggests that these alternative cryptocurrencies may be poised for a rebound.
Altcoins enter low valuation zone
Santiment’s analysis based on the market-to-value (MVRV) metric paints an intriguing picture. Altcoins are currently overwhelmingly devalued after last week’s bloodbath. This divergence of opinion among investors regarding the market’s recovery potential creates a unique opportunity.
The MVRV metric assesses whether a crypto asset is overvalued or undervalued. Therefore, it is an important indicator. The metric indicates that it is currently trading in the low buy zone for altcoins. Despite significant market cap losses over the past week, investors are divided. Some expect a quick recovery. On the other hand, some investors fear that this could be the beginning of a long-term recession. However, Santiment believes that average crypto returns are currently in historically favorable territory.
Bitcoin whales remain active
Santiment didn’t just evaluate altcoins. He also noted that amid the market turmoil, Bitcoin (BTC) whales continue to demonstrate significant activity. Despite one of the sharpest price drops in 2023, a significant number of transactions involving Bitcoin exceeded $1 million. This indicates that the large owners or “whales” are actively moving in the current market environment.
Bitcoin is currently trading at $26,130. On the other hand, it has shown a slight increase in the last 24 hours. However, it has dropped a notable 13% from its seven-day high of $29,652. Now everyone is looking at which side the next move will be.
expectations continue
When we look at Kriptokoin.com, we witness stability indicators in Bitcoin and altcoins. On the other hand, attention is focused on Santiment’s metrics.
The centiment metric is now on altcoins that are considered undervalued. Different views among investors add an element of uncertainty to the future direction of the market. On the other hand, it leaves us in anticipation as we watch how events will unfold.
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