[Bitcoin Now] Has It Finally Hit Bottom... Surges Over 10% in a Week

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the leading cryptocurrency, has settled in the $23,000 range after rising more than 10% in a week. Additionally, as indicators suggesting a further upward trend in Bitcoin's price are emerging one by one, bottoming-out theories are being raised.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:07 AM on the 22nd, Bitcoin's price was $23,173 (approximately 30.38 million KRW), down 0.69% from the previous day. Although Bitcoin's price showed a decline on this day, it rose by about $3,000 compared to the $20,000 range on the 15th of this month. During the same period, Bitcoin's market capitalization also increased by more than $44.7 billion, from $397.86122 billion (approximately 520.046 trillion KRW) to $442.58923 billion (approximately 580.1902 trillion KRW).

While Bitcoin's price is on the rise, indicators signaling a rebound are also appearing. First, Bitcoin's MVRV (Market Value to Realized Value) ratio has exceeded 1. MVRV is the ratio of market capitalization to realized capitalization and is an indicator used to estimate whether a cryptocurrency is undervalued or overvalued. Generally, a value below 1 often indicates a bottom, while a value above 3.7 often indicates a peak. As of the 18th of this month, Bitcoin's MVRV was recorded at 1.02, surpassing 1 for the first time since the 12th of last month. On the 19th and 20th, it recorded 1.07 and 1.06 respectively, showing an upward trend after hitting a recent low of 0.84 on the 18th of last month.

Bitcoin's NUPL (Net Unrealized Profit and Loss) indicator has also improved. NUPL is the difference between Bitcoin's market capitalization and realized capitalization divided by the market capitalization. It is used as an indicator to show whether the overall investors are in profit or loss zones, with values above 0 indicating that more Bitcoins are in profit zones. Bitcoin's NUPL recorded 0.021 on the 18th of this month, marking the first time it was above 0 since the 12th of last month. After the 18th, NUPL also showed an upward trend, rising to 0.063 on the 19th.

Investor sentiment has also recovered from 'extreme fear' to 'fear.' On this day, the Fear & Greed Index provided by cryptocurrency data provider Alternative was 33 points, indicating a fear stage. Although it dropped by 1 point from the previous day, the fear stage has continued since it recorded 30 points (fear) on the 19th of this month. Compared to last week's 15 points (extreme fear) and last month's 11 points (extreme fear), it has risen significantly. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and shrinking investor sentiment, to 100, indicating optimism about investment.