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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