Thanks for a.) the explanation and b.) the heavy lifting of responding to everyone here and on X too. Just as much education in the conversation when you're in there mixing it up, so it's much appreciated.
What I'm wondering is whether this trade slowly burns the MVRV ratio lower like a fuse (or in other words steadily presses the Realized Cap upward against the ceiling of a stable but choppy price) since coins are churning around in the mechanics of the cash and carry and getting repriced higher as a result. From looking at the charts for both metrics they appear to be heading in those respective directions, albeit slowly.
If that is the case, would it follow that once the MVRV fuse burns low enough/Realized Cap upward pressure gets close enough to market cap "ceiling," there's enough perceived value for us to push into a new range? And potentially start chopping again, but at a higher plateau?
Great question. I think generally speaking, MVRV is compressing as Bitcoin gets larger, slower, and harder to move (less extremes, more normal). Given futures and C&C trades are a part of this growing up and a feature that adds liquidity and dampens volatility, you could argue these are linked. So yes in a way, but not necessarily the driving force.
Thanks for a.) the explanation and b.) the heavy lifting of responding to everyone here and on X too. Just as much education in the conversation when you're in there mixing it up, so it's much appreciated.
What I'm wondering is whether this trade slowly burns the MVRV ratio lower like a fuse (or in other words steadily presses the Realized Cap upward against the ceiling of a stable but choppy price) since coins are churning around in the mechanics of the cash and carry and getting repriced higher as a result. From looking at the charts for both metrics they appear to be heading in those respective directions, albeit slowly.
If that is the case, would it follow that once the MVRV fuse burns low enough/Realized Cap upward pressure gets close enough to market cap "ceiling," there's enough perceived value for us to push into a new range? And potentially start chopping again, but at a higher plateau?
Great question. I think generally speaking, MVRV is compressing as Bitcoin gets larger, slower, and harder to move (less extremes, more normal). Given futures and C&C trades are a part of this growing up and a feature that adds liquidity and dampens volatility, you could argue these are linked. So yes in a way, but not necessarily the driving force.