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2 months ago
Crypto Market Dips Below $3 Trillion: Is It a Buy-the-Dip Opportunity?
Summary
The broader cryptocurrency market is facing renewed selling pressure, with total market capitalization falling below $3 trillion.
The rise in the Japanese yen has reignited fears of a yen carry trade unwind, pushing risk-on assets like cryptocurrencies lower while safe-haven assets such as gold and silver rally.
On-chain data, however, suggests the crypto market may be undervalued.
In the last 24 hours, the crypto market has faced additional selling pressure, losing the $3 trillion support levels.
As per Coinglass data, the liquidations have topped over $670 million, with over 85% share of long liquidations.
Blockchain analytics firm Santiment showed that the 30-day Market Value to Realized Value (MVRV) metric highlights a more favourable risk profile.
A negative 30-day MVRV suggests the average trader is currently holding at a loss, which can create potential entry opportunities as profits remain below typical “zero-sum” equilibrium levels.
A positive 30-day MVRV indicates that traders are in profit, increasing the likelihood of profit-taking.
According to Santiment, the 30-day MVRV for major altcoins such as Ethereum , XRP , Chainlink , and Cardano currently sits in negative territory, ranging from -5% to -10%.
Data from 10x Research shows that Bitcoin’s daily stochastic indicators are at very low levels of 15-16%, suggesting that the asset is currently in extremely oversold territory.
Despite the oversold reading, Bitcoin has been trending lower since reaching peaks above $125,000 in mid-2025, with the white price line (left-hand scale) showing a consistent downward bias over recent months.
Market analysts said a potential rotation from gold into Bitcoin is becoming increasingly likely, citing a major drop in the BTC-to-gold ratio.
According to the image below, the BTC/gold ratio is displaying a rare historical outlier, which suggests a major imbalance between the two assets.
Earlier today, gold prices rose above $5,000 for the first time amid ongoing macroeconomic uncertainty.
Analysts expect that for the BTC-to-gold ratio to return to equilibrium, capital will need to rotate from gold into Bitcoin.
Read original story Crypto Market Dips Below $3 Trillion: Is It a Buy-the-Dip Opportunity? by Bhushan Akolkar at Coinspeaker.com
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The rise in the Japanese yen has reignited fears of a yen carry trade unwind, pushing risk-on assets like cryptocurrencies lower while safe-haven assets such as gold and silver rally.
On-chain data, however, suggests the crypto market may be undervalued.
In the last 24 hours, the crypto market has faced additional selling pressure, losing the $3 trillion support levels.
As per Coinglass data, the liquidations have topped over $670 million, with over 85% share of long liquidations.
Blockchain analytics firm Santiment showed that the 30-day Market Value to Realized Value (MVRV) metric highlights a more favourable risk profile.
A negative 30-day MVRV suggests the average trader is currently holding at a loss, which can create potential entry opportunities as profits remain below typical “zero-sum” equilibrium levels.
A positive 30-day MVRV indicates that traders are in profit, increasing the likelihood of profit-taking.
According to Santiment, the 30-day MVRV for major altcoins such as Ethereum , XRP , Chainlink , and Cardano currently sits in negative territory, ranging from -5% to -10%.
Data from 10x Research shows that Bitcoin’s daily stochastic indicators are at very low levels of 15-16%, suggesting that the asset is currently in extremely oversold territory.
Despite the oversold reading, Bitcoin has been trending lower since reaching peaks above $125,000 in mid-2025, with the white price line (left-hand scale) showing a consistent downward bias over recent months.
Market analysts said a potential rotation from gold into Bitcoin is becoming increasingly likely, citing a major drop in the BTC-to-gold ratio.
According to the image below, the BTC/gold ratio is displaying a rare historical outlier, which suggests a major imbalance between the two assets.
Earlier today, gold prices rose above $5,000 for the first time amid ongoing macroeconomic uncertainty.
Analysts expect that for the BTC-to-gold ratio to return to equilibrium, capital will need to rotate from gold into Bitcoin.
Read original story Crypto Market Dips Below $3 Trillion: Is It a Buy-the-Dip Opportunity? by Bhushan Akolkar at Coinspeaker.com
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AI Description
The article discusses the recent downturn in the cryptocurrency market, with total market capitalization falling below $3 trillion. It explores the potential for a 'buy-the-dip' opportunity amid market volatility.