Crypto Market Update - 3/13/2020
Please see important disclosures at the bottom of this report
Back in December 2019, I started saying we’re in a “crypto Goldilocks economy” that’s “not too hot and not too cold” – meaning, markets weren’t expensive, but they weren’t cheap either.
That changed this week.
Corona. Macro. Panic. Reason aside, Bitcoin’s price retraced to a low of $3,858 and now sits around $5,400, and its Market Cap / Cumulative Mining Revenue Ratio has fallen to 5.3x.
As an investor in any asset, crypto included, it’s not the price you pay that matters, it’s the relative value you get.
Bitcoin has not been this attractively priced, on a relative fundamental valuation basis, since February 2019, when it bottomed out around $3,400. Prior to that, we had not seen similarly attractive levels since November 2016, when Bitcoin was heading into the last bull market cycle and trading under $700!!!
Think about that.
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INFLOWS RESUME On Monday, market sentiments were rattled by a surprisingly strong manufacturing PMI figure, marking the first expansionary reading in 18 months. This led to a rise in rates, with risk assets across the board experiencing selloffs amid renewed inflation concerns and fears that the Federal Reserve might need to implement further measures to cool the economy. However, in our crypto comments video on Tuesday, we outlined a couple...
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