Bitcoin’s Coolness Factor: Is It Just a Fancy Number Game? 🤔💰

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Well now, gather ’round, folks! A quant, who I reckon is a bit of a number wizard, has pointed out that our dear Bitcoin, sitting pretty at $103,000, ain’t exactly sweating bullets just yet. It seems the Mayer Multiple, whatever that may be, suggests it’s still as cool as a cucumber in a freezer when we compare it to the good ol’ days.

Bitcoin Mayer Multiple Z-Score: Still Chillin’ Below Average

In a recent ramble on the platform known as X, our friend Frank the quant has been yapping about the Mayer Multiple of Bitcoin. Now, this “Mayer Multiple” is just a fancy term for the ratio between the price of Bitcoin and its 200-day moving average (MA). Think of it as measuring how far our beloved Bitcoin has wandered from its usual haunts.

The 200-day MA is like the wise old sage of the crypto world, marking the line between bullish optimism and bearish gloom. It’s good to know how far Bitcoin is from this sage’s advice.

But hold your horses! The Mayer Multiple itself is not the star of this show; it’s the Z-Score that’s got the spotlight. This Z-Score is like a rollercoaster, tracking how much the Mayer Multiple has strayed from its average value. 🎢

Now, feast your eyes on the chart shared by our analyst friend:

As you can see in the top graph, Bitcoin took a little tumble below the 200-day MA during a market hiccup, but it’s bounced back like a rubber ball! However, it seems it hasn’t strayed too far from the line, at least not in the grand scheme of things.

And lo and behold, the Mayer Multiple Z-Score (that bottom graph) is still below zero. A negative score means it’s not quite living up to its historical average. In fact, 53% of the time, the ratio has been higher than what we see now. So, our quant buddy claims Bitcoin is still relatively cool, even at its current price of $103,000. 🥶

From the chart, it’s clear that while the Z-Score is still in the negative zone, it’s looking a tad better than the lows we saw earlier this year. If Bitcoin keeps up its bullish antics, it might just challenge that zero level soon enough.

In this current cycle, the Mayer Multiple has flirted with being higher than its mean a few times, especially during the raucous rally of Q1 2024, where the Z-Score shot up like a firecracker. 🎆

But so far, the Bitcoin Mayer Multiple hasn’t strayed as far as it did during the wild bull run of early 2021. Now, we’re all left wondering if it’ll heat up to those fiery levels again or just keep playing it cool.

BTC Price

As of this very moment, Bitcoin is trading around $102,700, down a smidge of 1.5% over the last week. So, keep your hats on, folks; it’s a wild ride! 🎩

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2025-05-20 06:06