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Bitcoin Currently Trading Near On-Chain Fair Value Model
An on-chain analysis model indicates that Bitcoin is trading around its "fair value," neither overvalued nor undervalued.
Bitcoin's On-Chain Fair Value
- A cycle analyst, Root, has shared insights using the On-chain Value Map, which assesses Bitcoin's valuation through three metrics: Realized Cap, Liquid Supply, and Coin Days Destroyed (CDD).
- Realized Cap: This calculates Bitcoin's total value based on the last transaction price of each token. It reflects the capital used by investors to purchase BTC.
- Liquid Supply: Tracks the portion of BTC held by investors who frequently move their coins, indicating potential supply returning to circulation.
- Coin Days Destroyed (CDD): Measures coin days reset across the network, useful in identifying long-term holders' distribution activities.
The On-chain Value Map shows Bitcoin spiked above the "overvalued" level at its all-time high (ATH) in October but has since declined to the "fair value" level.
BTC Price
- Since November's low, Bitcoin has remained close to the fair value indicated by the On-chain Value Map.
- Currently trading around $87,600.
