The global cryptocurrency market has gained traction in the last 24 hours, with no recent bearishness, breaking the recent trend. The worldwide cryptocurrency market has continued to rise, with gains of 5 percent in the last 24 hours. BTC is currently near the upper confines of the $33,000-$44,000 band that it has been trading inside since early January, after recovering above $40,000 on Wednesday. At the time of writing Bitcoin Price is trading at $41,216.
Is the Bitcoin price reasonable at the moment?
The market has seen a new record of on-chain volume as Bitcoin continues to trade in the dreaded $45,000-$39,000 zone. Since the first cryptocurrency was issued at a price of $3,400, the range of $38,000-$39,000 saw the highest level of on-chain volume at any price.
Many researchers and professionals have debated what the “fair price” for “digital gold” is throughout the trading history of the first cryptocurrency. It was nearly impossible to ascertain at what value traders thought BTC “fair” due to its volatile nature.
With the on-chain volume at an all-time high of around $39,000, we may conclude that the majority of the market, including traders and long-term and institutional investors, considers the price to be the most reasonable for Bitcoin.
The immaturity of Bitcoin in comparison to commodities like gold or currencies like the US Dollar is the primary cause for its continual fluctuation in fair value.
Aside from a continually changing fair value, Bitcoin’s volatility is also a significant component, which is prone to change as the market develops. Bitcoin’s average volatility has already dropped dramatically in comparison to past years.
The “old fair value” of the cryptocurrency, or the prior point of on-chain volume concentration, was $3,432, which was considered fair value before the bull run to $69,000, with 5.2 percent of total Bitcoin supply transferred there.
Following the market’s retracement in 2017, Bitcoin achieved $3,400, the long-term turnaround point that allowed the digital gold to reach new highs in 2021.