Key Points
- The crypto market faces renewed pressure due to U.S. President Donald Trump’s proposed 25% tariff on the European Union.
- Crypto analyst Chapo predicts a further bullish momentum for Bitcoin, with the MVRV ratio peaking at 3.2.
The cryptocurrency market is experiencing increased strain as U.S. President Donald Trump proposes a 25% tariff on the European Union. This move is adding to the already present instability in global financial markets.
Market Turbulence and Bitcoin
The digital asset market is being rocked by economic uncertainty. However, Assure DeFi CEO and crypto analyst Chapo holds a positive outlook for Bitcoin [BTC]. He believes that despite the ongoing volatility, Bitcoin still has potential to peak in this cycle.
Chapo refers to Bitcoin’s Market-Value-to-Realized-Value (MVRV) ratio, a significant metric for valuation, to support his claim. He stated on X (formerly Twitter) that he predicts a peak MVRV this cycle around 3.2, indicating a bullish year in 2025 before we reach the peak of this cycle.
MVRV Ratio
The MVRV ratio, which compares market capitalization to realized capitalization to determine if the asset is over or undervalued, currently stands at 1.95 according to Bitbo. However, Chapo noted that the current MVRV is at 2.09, suggesting that the average BTC holder has more than doubled their initial investment.
Historically, the MVRV sees sharp spikes when Bitcoin nears its cycle peak. This reinforces the belief that the market remains in a strong bullish phase.
At the time of writing, BTC was trading at $86,113.30 after a 3.47% decline in the past 24 hours, according to CoinMarketCap. The cryptocurrency dipped to $88,000 following Trump’s previous tariff announcement on Canada and Mexico, highlighting the complex market dynamics at play.
As the market continues to be volatile, it waits for further signals. It is yet to be seen whether Bitcoin has found a stable support level or if more corrections are on the horizon.