- The Messari founder has suggested an investment strategy for Bitcoin holders amid a potential upward rally.
- According to Selkis, investors should ideally hold on to Bitcoin for the next few months.
- Selkis targets Bitcoin’s Free Float Supply MVRV to reach 2-3 in a couple of months.
Messari founder and CEO Ryan Selkis has suggested an investment strategy for Bitcoin holders amid a potential upward rally in the expected bull cycle. According to Selkis, investors should ideally hold on to Bitcoin for the next few months, then take some gains as the Market Value to Realized Value (MVRV) crosses 2-3.
Selkis further advised Bitcoin investors to follow the holding strategy by setting aside half of their investment for taxes and using the other half to “play the hot ball of money game.” However, he summarized that the ultimate aim of Bitcoin investors in the first quarter of 2024 should be to hold and create an investment strategy.
Multiple respondents to the Messari founder’s post on X (formerly Twitter) commented that the MVRV value has already crossed the 2.0 mark on various analytics platforms. In response, Selkis clarified that the MVRV in his post refers to the metric based on Coinmetric’s “Free Float Supply.”
Hence, Selkis’ preferred metric is derived by dividing Bitcoin’s free float market capitalization by its realized capitalization. That varies from the traditional MVRV metric calculated by dividing Bitcoin’s market capitalization by its realized capitalization. Using his preferred metric, the Messari founder showed via a post that the Bitcoin “Free Float Supply” MVRV is below 1.5, leaving room for significant potential upside movement.
Bitcoin traded for $46,887 at the time of writing after pulling back from the recently achieved yearly high of $47,281, according to data from TradingView. Upside speculation for the flagship cryptocurrency continues, with users expecting the approval of spot Bitcoin ETFs ahead of the upcoming Bitcoin halving expected to take place in April.
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