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First Mover: Why Mohamed El-Erian Might Have Held Bitcoin at $19K.

A lot of cryptocurrency analysts and investors are convinced that now’s not the time to take profits on bitcoin, even after its market capitalization surged this year to more than $350 billion. .

As discussed previously in First Mover, one of the problems with valuing bitcoin is that the cryptocurrency was just invented 11 years ago, so there’s no deep history of reliable analytical factors to key off, such as the stock market’s price-to-earnings ratios, bond-market yield comparisons or even the supply-and-demand forecasts used in commodities. .

The number of accumulation addresses – a proxy for those who are buying and holding – has dropped to 495,000 from 514,000 over past four weeks, according to data source Glassnode

Accumulation addresses are those that have at least two incoming “non-dust” transfers (representing minuscule amounts of bitcoin) and have never spent funds