$
Many people are scared today. Binance News published a statement by Ki Young Ju, founder of CryptoQuant:
That even if the $58 billion that has flowed into Bitcoin ETFs and the 1.3 million BTC held by treasury companies were sold, Bitcoinโs on-chain floor would be around $30,000. Not $10,000.
Why? And this is where what I always tell you comes in: Before investing, understand its function and purpose.
1. What is the on-chain cost basis?
Itโs the average price at which all Bitcoin last moved. Itโs what people actually paid. Today, that cost is well above $30K. For BTC to fall to $10K, something would have to happen thatโs never happened before.
2. What is the MVRV ratio you mentioned?
MVRV = Market Price / Realized Price (what it cost).
If BTC were to reach $10k, MVRV would fall to 0.2. BTC's lowest historical floor ever was 0.6. In other words, it would have to be 3 times more undervalued than during the worst crash in its history.
For that to happen, according to Ju, even the buyers from 2019, who have already weathered TWO drops of -75%, would have to panic and sell. Very unlikely.
3. So, what is Bitcoin's real purpose?
Bitcoin is more than just a number on Binance.
- Function 1: Store of value. It's digital gold. There will only ever be 21 million. That's why companies and ETFs are accumulating it.
- Function 2: Global settlement network. It doesn't depend on banks or governments. That's why its on-chain cost is so important.
- Function 3: Hedge. When the entire traditional system fails, BTC is the way out.
If you understand this, you understand why today's $81,433 isn't the same as $81k three years ago. Today, 1.3 million BTC are held in corporate treasuries by companies that DON'T want to sell.
My conclusion for you:
Don't invest because of the price. Invest because of the purpose. If you believe the world needs decentralized and scarce money, downturns are opportunities. If all you see is the price, every downturn is a panic.
The real floor isn't set by a tweet; it's set by the cost basis of everyone who believes in the project.
Are you investing in the price or the purpose? Let me know in the comments.
$BTC #Bitcoin #CryptoQuant #CryptoEducation
Disclaimer: This is for educational purposes and is not financial advice. Source: Binance News / Cr
yptoQuant / Odaily.
