๐ Bitcoin Market Insight by Axel Adler! ๐
Crypto analyst Axel Adler has shared key insights into Bitcoinโs current position in the market. Using the โBitcoin Distribution by Realized Supplyโ metric, he evaluated whether BTC is currently overpriced or undervalued compared to what investors paid on average. ๐ค๐ฐ
๐ According to Adler, Realized Supply reflects the total dollar value of all Bitcoins, based on their last transaction price. When you compare this with the current Bitcoin price using the formula:
๐งฎ Ratio = BTC Price / Realized Supply
โฆit acts similarly to the P/E ratio in traditional stock markets.
๐ Adler explained:
โThe higher the ratio, the more expensive Bitcoin is. A lower ratio suggests a cheaper price relative to what holders paid.โ
Right now, this ratio is just above the yearly average, placing BTC in a neutral zone โ not overheated, not undervalued. โ๏ธ
๐ฅ Interestingly, a similar ratio was seen right before the big breakout in November 2024, when Bitcoin jumped from $74K to $107K! ๐๐ฅ
Adler also pointed to another crucial stat:
๐ 365-Day BTC Price Change โ currently around +30% ๐
If the classic macro cycle continues, that number could climb to 60-70%, at which point many investors might consider locking in gains. ๐ธ๐น
๐ฃ๏ธ โOnce that level is reached, weโll see two camps: those taking profits and those holding out for more upside,โ Adler said โ a pattern thatโs been consistent since September 2023. ๐โณ #BTC110KToday? #Bitcoinโ