On-chain analytics platform Santiment says one key metric is burning ‘buy signals’ for 3 altcoins. The analyzes came at a time when the market was under selling pressure accompanied by a series of negative developments.
Santiment analysts say several altcoin projects have been overlooked
The on-chain analytics platform says in a new report that the Market Cap to Realized Value (MVRV) ratio is burning buy signals for altcoin investors. In recent days when the market has been down in double digits, the MVRV model indicates that it is time to buy altcoins.
Santiment stated that prices could fall further, but current levels are opportunity zones for January. The 3 altcoin projects that have reached the mentioned opportunity zone are as follows…
🤠📊 If you have been awaiting the time to buy #altcoins when there is blood in the streets, our MVRV model indicates that this time has arrived. Prices can of course still fall further, but this is the most #crypto assets have been in opportunity zones since early January. pic.twitter.com/LoM4ooiGUU
— Santiment (@santimentfeed) March 9, 2023
Ethereum-based altcoin projects are trading in the opportunity zone
Brian Quinlivan of Santiment added that dYdX (DYDX), Hashflow (HFT) and Mask Network (MASK) are some of the altcoins that are in the “opportunity zone”. According to Quinlivan, it may make sense to add or take a new position in altcoins traded in the opportunity zone. In some of the detailed analysis, he says:
In the MVRV model, we have an algorithm that shows how close it is to the opportunity zone… Here we can see several different altcoins. I think I see dYdX as one, Hashflow and Mask [Network] as one.
Anything above the zero line [beginning of opportunity zone] here is at a better-than-average point where an addition to our position might seem reasonable. Or it might make sense to open a new position.
Could the US crypto move bring more drops?
According to sources, the administration of US President Joe Biden is planning to impose a consumption tax on cryptocurrency mining companies of 30% of the cost of the power they use. According to the Department of the Treasury, any company that uses owned or borrowed computing resources to mine cryptocurrencies will be subject to the 30% tax, which is expected to be imposed over three years in increments of 10% per year from December 31.
Also, President Joe Biden’s Fiscal Year 2024 budget included a proposal to implement new selling rules for cryptocurrencies to close tax loopholes. cryptocoin.comWe have stated that the USA will review the new crypto money law very soon.
Treasury has released the Greenbook, the General Explanations of the Administration’s FY2024 Revenue Proposals, describing revenue measures in President Biden’s Fiscal Year 2024 Budget. https://t.co/M83N9Vpo1v
— Treasury Department (@USTreasury) March 9, 2023
According to the White House, the U.S. government expects to impose restrictions on cryptocurrencies from December 31, 2023, with the country earning about $24 billion from closing the gap. Prior to that, crypto bank Silvergate’s announcement that it was halting operations led to a $20,000 break in BTC price. BTC fell back below its critical support two months later.
