• Bitcoin (BTC) slipped back below $27,000 as investors weighed the latest regulatory moves.
• Bitwise Asset Management President Teddy Fusaro gave his crypto markets analysis and reaction to JPMorgan analysts saying the stablecoin universe is shrinking.
• Litecoin’s (LTC) market value to realized value (MVRV) Z-score was negative at press time, indicating it’s undervalued relative to its fair value.
Price Movement of Crypto Markets
Bitcoin (BTC) slipped back below $27,000 as investors weighed the ongoing debt ceiling talks in Washington D.C. and the latest regulatory moves in crypto markets.
Analysis by Bitwise Asset Management
Bitwise Asset Management President Teddy Fusaro shared insights into the Bitwise 10 Large Cap Crypto Index and reacted to JPMorgan analysts who said that until the stablecoin universe stops shrinking, a sustained recovery in crypto prices is unlikely.
Litecoin Might Be Trading at a Discount
An onchain metric suggests that litecoin (LTC), the 12th largest cryptocurrency by market value, is trading at discounted prices. Litecoin’s Market Value to Realized Value (MVRV) Z-score was negative at press time, indicating it’s undervalued relative to its fair value according to analytics firm Glassnode. The market capitalization is calculated by multiplying total coins in circulation with its price while realized value adds market values of coins when they last moved on blockchain and excludes lost coins from circulation which reflects real or fair value of network.
Stablecoin Universe Shrinking
JPMorgan said in their research report Thursday that headwinds such as U.S regulatory crackdown on crypto, unsettling banking networks for the crypto ecosystem and reverberations from FTX collapse are weighing on stablecoins universe which can hinder sustained recovery in crypto prices until it stops shrinking.