As U.S. President Donald Trump’s “Liberation Day” approaches, the stock market is showing signs of volatility. Tech giants like Tesla and Nvidia have seen losses in overnight trading, indicating economic uncertainty in the market. The Kobeissi Letter highlighted that economic policy uncertainty has reached its highest point since 2020, with the 2nd of April being a crucial date to watch.
Furthermore, the upcoming U.S. jobs report on the 4th of April is expected to impact market sentiment. Gold ETFs have witnessed significant capital inflows as investors seek safe-haven assets amidst the economic turmoil. This shift has also affected Bitcoin and the wider cryptocurrency market, which are considered risk-on assets.
Analysts have turned to on-chain metrics to gauge Bitcoin’s stability amid market fluctuations. The short-term holder MVRV Bollinger Bands chart indicates oversold conditions, with the price of Bitcoin below the cost-basis of short-term holders. The cryptocurrency market has cooled off since its peak in November and December, with Bitcoin likely to dip below the oversold level in the near future.
The Mayer Multiple, a key metric for evaluating Bitcoin’s valuation, currently stands at 0.96. Bitcoin fell below its 200-day Moving Average (MA) two weeks ago and has since traded just below this level. Investors eyeing a buying opportunity should monitor the 0.8 Mayer multiple, which represents a potential “cheap” price level of $68.74k for Bitcoin.
In light of the ongoing economic uncertainty, long-term investors are advised to remain patient and weather the storm. Dollar Cost Averaging (DCA) into Bitcoin or capitalizing on significant price drops from liquidation events could present buying opportunities. As market sentiment shifts in the future, a bullish trend reversal may become apparent.
In conclusion, navigating the current market conditions requires a strategic approach and a long-term perspective. By staying informed and monitoring key metrics, investors can position themselves for potential opportunities in the evolving cryptocurrency landscape.