BTC MVRV Ratio Nears Historical Lows; Yellen Softens Stance on Crypto

Chart of the Day

On Thursday, the broader crypto market continued its stagnation as investors look to catch their breaths after having pulled out a knee-jerk reaction to the U.S. Federal Reserve's hawkish stance (with regard to combating inflation) just a day before. As of the time of writing, BTC is consolidating above the $43k handle after experiencing some marginal gains over the last 24 hours. A bearish trendline with its upper bound near the $43.8k level is also forming on BTC's hourly chart, where a clear breakout above said resistance level would likely fuel the largest cryptocurrency by market cap to accelerate its upside gains. On the on-chain front, BTC's Market Value to Realized Value (MVRV) ratio has been hovering near historical lows, suggesting that there is room for BTC's "fair value" to increase. Meanwhile, the Stablecoin Supply Ratio (SSR) still has a long way to go if it wants to get back to previous highs. For some context, it can be understood that capital is flowing from stablecoins into BTC if the SSR trends upwards.