Jeff Sprecher, the chairman of New York Stock Exchange and the Chief Executive Officer of Intercontinental Exchange, shouldered support to the top cryptocurrency, Bitcoin [BTC], at the Consensus: Invest conference, on Tuesday. Sprecher’s support to the token comes after the panic that surrounded the crypto market last week after it went on a downward spiral.
According to CNBC, when the chairman was asked about the survival of the digital asset, he said:
“The unequivocal answer is yes. As an exchange operator, it’s not our objective to opine on prices.”
After facing a new 14-month low over the weekend, the world’s largest cryptocurrency was back on the bull’s back with a 5 percent growth over the past 24 hours, trading at around $4,300 on Wednesday.
Sprecher stated that Bitcoin has lived in a swamp but has still managed to survive. He added that though it lacks in the best technology out of all cryptocurrencies, Bitcoin will still pose as the yardstick by which all other cryptocurrencies will be measured. He added:
“There are thousands of other tokens that you could argue are better, but yet, Bitcoin continues to survive, thrive and attract attention.”
Sprecher compared Bitcoin to Dow Jones Industrial Average, commonly known as Dow. The Dow is an index of 30 stocks and it gives more importance to the stocks while ignoring the industry size and the market cap. According to the report, Dow representatives claim that it is not an absolute representation of the market performance. However, Dow is the widely used barometer.
On the same line, Sprecher noted that Bitcoin has flaws, but it’s possibly the go-to cryptocurrency. The chairman added:
“Often times in finance, it’s not about being the best. It turns out to be about being the broadest and the most commonly accepted and for whatever reason, Bitcoin has become that.”
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Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000
With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.
The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.
Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”
At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,
“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”
The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.
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