Bitcoin investors don’t have long to gather bitcoin before the price goes beyond $20,000 (€16,504). This is the conclusion of an analysis by Stack Funds, published on 10 December.
Bitcoin is still cheap
According to the weekly analysis of the Asian cryptocurrency fund Stack Funds, you only have a moment to buy bitcoin under USD 20,000. Stack Funds bases this statement on a special indicator: the market cap to thermo cap ratio (MCTC).
This indicator now shows the same value as in 2017, when the bitcoin price rose from USD 1,000 (EUR 825) to USD 19,866 (EUR 16,407) on the cryptocurrency exchange Coinbase.
Back to the indicator. MCTC looks at the total market value of bitcoin, and compares this with the profit of bitcoin miners (the thermocap). The total market value of bitcoin is calculated by multiplying the number of coins by the current price.
The MCTC gives you an indication of where the bitcoin market is located. A value close to 0 means that the bitcoin price is close to a bottom. A value of 60 and above means that the top of bitcoin is almost in sight.
Indicator is favourable
According to Stack Funds, the MCTC indicator now shows a favourable value:
„The ratio is currently around 17, which corresponds to the peak of 2019. In addition, this value equals the outbreak of bitcoin in 2017. When the value broke through 20, the real bitcoin rally had begun“.
According to Stack Funds, if bitcoin can sustain this upward trend, there is more than enough room for the bitcoin course to grow to new heights. In their weekly analysis, they elaborate on this:
„Given that the ratio is still at a low level, we tend to believe that there are still enough buying moments, but not long before the $20,000 outbreak“.