Benjamin Coven, founder and cryptocurrency analyst of The Cryptoverse, shared a Bitcoin (BTC) metric that includes bear market values. According to the metric, the price has not yet reached the bottom.
Analyst Benjamin Covenis an important metric that will make it easier to compare the past month seasons with the current season. shared. This metric, named “BTC Market Cycle Peak ROI”, measures the return on investments from the peak of the current cycle to determine the depth of losses the market is currently facing.
Return on investment or return on cost (ROI) is the ratio between net income and investment. A high return on investment means that the return on the investment is more advantageous than the cost. In bear markets, this reverses. With the profitability of the cryptocurrency market falling to new lows, retail and institutional investors tend to abandon their purchases and gradually reduce their exposure to digital assets.
Compared to previous bear markets, this bear cycle ROI drop from Bitcoin’s high has not been as drastic as it seems, according to the analyst’s metric. At the moment Bitcoin has not yet reached the bottom of the ROI of previous cycles. However, according to the analyst 0.3 ROI A drop in rate indicates that the market has already suffered deep losses and is now likely to move towards the acceleration phase.
On the other hand, since the loss in the market according to the metric has not yet reached the values we saw in the 2018 bear market, further decline livable. Still, the data show that the long-running downtrend is coming to an end.
